At the end of 2025, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful
Question:
At the end of 2025, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2026, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off.
Instructions
a. Prepare the journal entry for Aramis Company to write off the Ramirez receivable.
b. What is the net amount expected to be collected of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable?
c. What is the net amount expected to be collected of Aramis Company’s accounts receivable after the write-off of the Ramirez receivable?
Step by Step Answer:
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield