Under the allowance method

Under the allowance method - amounts Before writing off J...

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Under the allowance method, a write-off does not change the net realizable value of accounts  receivable. It simply reduces accounts receivable and allowance for bad debts by equivalent 
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Unformatted text preview: amounts. Before writing off J. Smith's account After writing off J. Smith's account Accounts Receivable $100,000 $99,775 Less: Allowance for Bad Debts (5.000) (4.775) Net Realizable Value $95,000 $95,000...
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