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Prior to the write off of a $30 customer account, Kraft Company had the following account...

Prior to the write off of a $30 customer account, Kraft Company had the following account balances: Accounts Receivable $9,800 Allowance for Bad Debt 500 The net realizable value of the receivables before and after the write-off was: Select one: a. $9,800 before, $9,770 after b. $9,800 before, $9,800 after c. $9,300 before, $9,270 after d. $9,300 before, $9,300 after

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Answer #1

Calculate net realizable value

Before After
Account receivable 9800 (9800-30) = 9770
Allowance for doubtful account 500 (500-30) = 470
Net realizable value 9300 9300

So answer is d) $9300 before; $9300 After

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