At the end of 2011, Delong Co. has accounts receivable of $700,000 and an allowance
for doubtful accounts of $54,000. On January 24, 2012, the company learns that its receivable
from Ristau Inc. is not collectible, and management authorizes a write-off of $5,400.
(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?
for doubtful accounts of $54,000. On January 24, 2012, the company learns that its receivable
from Ristau Inc. is not collectible, and management authorizes a write-off of $5,400.
(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?