Question

At the end of 2017, BLANK #1 Company has accounts receivable of $874,600 and an allowance for doubtful accounts of $43,800. On January 16, 2018, BLANK #1 Company determined that its receivable from BLANK #2 Company of $7,940 will not be collected, and management authorized its write-off.

Prepare the journal entry for BLANK #1 Company to write off the BLANK #2 receivable. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 16, 2018

What is the net realizable value of BLANK #1 Company’s accounts receivable before the write-off of the BLANK #2 receivable? Net realizable value $

What is the net realizable value of BLANK #1 Company’s accounts receivable after the write-off of the BLANK #2 receivable? Net realizable value $

Answer 1

Answer

Date	Accounts title	Debit	Credit
16-Jan-18	Allowance for Doubtful Accounts	$7,940
	Accounts receivables - Blank #2		$7,940
	(to record write off)

• Before Write off

Accounts receivables	$874,600
Less: Allowance for doubtful accounts	$43,800
Net realizable value	$830,800	Answer

• After write off

Accounts receivables [874600 - 7940]	$866,660
Less: Allowance for doubtful accounts [43800 - 7940]	$35,860
Net realizable value	$830,800	Answer