A Company That Uses the Allowance Method, Writes-Off a Receivable

Multiple Choice

A company that uses the allowance method, writes-off a receivable of $7000. Prior to the journal entry, the credit balance in the Allowance for Uncollectible Accounts was $18,432 and Accounts Receivable were $2,001,000. After the entry to write-off the receivable is made, the net realizable value of Accounts Receivable will be:

A) $1,975,568.
B) $1,982,568.
C) $1,994,000.
D) $2,001,000.