On December 31, 2014, when its accounts receivable were $300,000 and its account Allowance for Doubtful Accounts

Question:

On December 31, 2014, when its accounts receivable were $300,000 and its account Allowance for Doubtful Accounts had an unadjusted debit balance of $2,000, Ceja Corp. estimated that $16,800 of its accounts receivable would become uncollectible, and it recorded the bad debts adjusting entry. On May 11, 2015, Ceja determined that Robert Worthy's account was uncollectible and wrote off $1,900. On November 12, 2015, Worthy paid the amount previously written off.

Instructions

(a) Prepare the required journal entries to record each of the above transactions.

(b) What is the net realizable value of the receivables on (1) December 31, 2014, (2) May 11, 2015, and (3) November 12, 2015, assuming that the total amount of accounts receivable of $300,000 is unchanged on each of these three dates except for any changes recorded in (a).

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...