On June 1, Rangel Supplys Accounts Receivable balance was $ 25,325. The balance of the contra account

Question:

On June 1, Rangel Supply’s Accounts Receivable balance was $ 25,325. The balance of the contra account Allowance for Doubtful Accounts was $ 1,520 credit. On June 20, the account balance of McIntyre’s Bakery of $ 460 was written off.

a. Journalize the write-off of the McIntyre’s Bakery account using the allowance method.

b. Determine what is now the net realizable value of Accounts Receivable.

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...