Question

Assume the same information as BE9-4.
In BE9-4, At the end of 2014, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2015, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200.
(a) Prepare the journal entry to record the write-off.
(b) What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off?

On March 4, 2015, Carpenter Co. receives payment of $6,200 in full from Megan Gray. Prepare the journal entries to record this transaction.



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  • CreatedJanuary 30, 2014
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