At the end of 2011, Tatham Co. has accounts receivable of $700,000 and an allowance for doubtful

Question:

At the end of 2011, Tatham Co. has of $700,000 and an allowance for doubtful accounts of $25,000. On January 24, 2012, it is learned that the company’s receivable from Nardin Inc. is not collectible and therefore management authorizes a write-off of $4,300.
(a) Prepare the journal entry to record the write-off.
(b) What is the cash realizable value of the
(1) Before the write-off and
(2) After the write-off?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...