XYZ Company Had an Accounts Receivable Account Balance of $300

Multiple Choice

XYZ Company had an accounts receivable account balance of $300 000 and allowance for doubtful debts account balance of $12 500 prior to writing off a bad debt of $3000. The estimated net realisable value of accounts receivable before and after the write-off were, respectively:

A) $12 500 and $309 500.
B) $287 500 and $284 500.
C) $287 500 and $287 500.
D) $300 000 and $297 000.