At the end of 2015, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful

Question:

At the end of 2015, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2016, 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?

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...