Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q15RQ

Expert-verified
Horngren'S Financial And Managerial Accounting
Found in: Page 465

Short Answer

When a receivable is written off under the allowance method, how does it affect the net realizable value shown on the balance sheet?

There will be no change in net realizable value.

See the step by step solution

Step by Step Solution

Step 1: Definition of Balance Sheet

The term balance sheet is defined as the company’s financial statement, which shows the business's assets, liabilities, and owner’s equity.

Step 2: Affect on net realizable value

When an account is written off using the allowance methods, there will be no change in the net realizable value shown on the company's balance sheet.

Most popular questions for Business-studies Textbooks

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.