The Balance of Accounts Receivable,net of the Allowance Account,is $25,000

question 96

Multiple Choice

The balance of Accounts Receivable,net of the allowance account,is $25,000 before the write-off of a $2,000 account.What is the Accounts Receivable balance,net of the allowance account,after the write-off?

• A)$2,000
• B)$23,000
• C)$25,000
• D)$27,000

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, recognized as an asset.

Cash Sales

Transactions where customers pay for goods or services at the time of purchase using cash.

Credit Sales

Transactions where the payment is deferred to a future date, allowing the buyer to receive goods or services before payment is made.

Service Charge

A fee charged to customers for a specific service provided, often seen in banking, hospitality, and service industries.