Question

At the end of 2016, Wildhorse Co. has accounts receivable of $690,100 and an allowance for doubtful accounts of $25,090. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $3,913. - Your answer is partially correct. Use a tabular summary to record the write-off. Enter 2016 amounts as beginning balances. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Assets = Liabilities + Stockholders' Equity Retained Earni Allow. For Doubtful Accts Accts. Rec. + Common Stock Rev. Beg. $ 690,100 -25,090 Bal. Jan. 24 Adj. Bal. 686,187 -25,090 e Textbook and Media - Your answer is partially correct. What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value $ 665,010 661,097

Answer 1

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Answers are highlighted in yellow: Solution: Assets Liabilities + Stockholders equity Common + Rev. Exp = Net Income Beg. Bal. Jan.24 Adj. Bal. Acc Rec 690100 -3913 686187 Allowance = -25090 3913 -21177 Before write-off 665010 After write-off 665010 Cash realized value (686187-21177)