What is the amount of net accounts receivable before and after the write-off?
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Norcia Company, which uses the allowance method, began the year with
The company sold merchandise to Bruce Willis for $3,600 and later received $1,200 from Willis.
The rest of the amount due from Willis had to be written off as uncollectible. Using T accounts show the beginning balances and the effects of the Willis transactions on Accounts Receivable and Allowance for Uncollectible Accounts.
What is the amount of net accounts receivable before and after the write-off?
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