Question: 1. We report accounts receivable in the balance sheet at their net realizable value. Explain what this term means.
2. When we have established an allowance for uncollectible accounts, how do we write off an account receivable as uncollectible? What effect does this write-off have on the reported amount of total assets and net income at the time of the write-off?
3. If at the end of the year Allowance for Uncollectible Accounts has a credit balance before any adjustment, what might that tell us about last year's estimate of future uncollectible accounts?