Question B-2

Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of $21,500 just prior to writing off as worthless a customer's $5,000 account receivable. Calculate the net realizable value of Oakwood's accounts receivable before and after the write off. (Hint: Net Realizable Value of AR Gross AR- Allowance for Bad Debts) Net Realizable Value of Accounts Net Realizable Value of Accounts Receivable before the write off Receivable after the write ott