At the end of 2002, Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2003, it is learned that the company's receivable from Hutley Inc. is not collectible. Management authorizes a write-off of $7,000.

(a) Prepare the journal entry to record the write-off. 

(b) What is the net realizable value of the accounts receivable:

(1) before the write-off, and

(2) after the write-off?