At the end of 2014, Perry Co has an allowance for doubtful accounts of $28,000 On January 31, 2015, when it has accounts receivable of $575,000, Perry Co learns that its $5,500 receivable from Young Inc is not collectible Management authorizes a write off (a) Record the write off (b) What is the ne...

a Jan 31 Allowance for Doubtful Accounts 5500 ...

At the end of 2014, Perry Co. has an allowance for doubtful accounts of $28,000. On January

Question:

At the end of 2014, Perry Co. has an allowance for doubtful accounts of $28,000. On January 31, 2015, when it has of $575,000, Perry Co. learns that its $5,500 receivable from Young Inc. is not collectible. Management authorizes a write off.
(a) Record the write off.
(b) What is the net 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...