In reviewing the accounts receivable, the cash realizable value is $16,000 before the write-off of a $1,500 account. what is the cash realizable value after the write-off? $16,000 $17,500 $14,500 $1,500
The cash realizable value is the sum of
cash you look forward to get from your accounts receivable after deducting the
uncollectable amount. To compute
for the cash realizable value, deduct the uncollectable amount from your gross
accounts receivable. But since there is no uncollectable amount, the
cash realizable value is $16,000.
