A Company Who Uses the Allowance Method,writes-Off a Receivable of $2,000.Prior

question 37

Multiple Choice

A company who uses the allowance method,writes-off a receivable of $2,000.Prior to the journal entry,the credit balance in the Allowance for Uncollectible Accounts was $18,432 and Accounts Receivable were $2,000,000.After the entry to write-off the receivable is made,the net realizable value of Accounts Receivable will be:

• A)$1,979,568.
• B)$1,981,568.
• C)$1,998,000.
• D)$2,000,000.

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