Question

At the end of 2020, Tamarisk Company has accounts receivable of $720,000 and an allowance for doubtful accounts of $36,000. On January 16, 2021, Tamarisk Company determined that its receivable from Ramirez Company of $5,400 will not be collected, and management authorized its write-off. Prepare the journal entry for Tamarisk Company to write off the Ramirez receivable. (If no entry is required, select "No Entry"for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan 16, 2021 e Textbook and Media List of Accounts What is the net amount expected to be collected of Tamarisk Company's accounts receivable before the write-off of the Ramirez receivable? Net amount expected to be collected $ e Textbook and Media List of Accounts What is the net amount expected to be collected of Tamarisk Company's accounts receivable after the write-off of the Ramirez receivable? Net amount expected to be collected $

Answer 1

WORKING NOTES:
		Balance in Account receivable	$                 7,20,000
		Balance in allowance for doubtfull accounts	$                    36,000
		Balance of $ 5,400 of Ramirez company uncolletable
SOLUTION : 1
Journal Entries
Sr. No.	Date	Account Title and explanation	Debit	Credit
1	Jan 16, 2021	Allowanc for Doubtfull Accounts	$5,400
		Account Receivable - Ramirez Company		$5,400
SOLUTION : 2
	CALCULATION OF NET NET ACCOUNT RECEIVABLE AFTER WRITE OFF ACCOUNT RECEIVABLE OF RAMIREZ CO.
		Account Receivable before Write off	$7,20,000
		Less: Write of uncollectable of Ramirez	$5,400
		Net Account Receivable	$7,14,600
		Allowanc for Doubtfull Accounts	$36,000
		Less: Write of uncollectable of Ramirez	$5,400
		Balance in Allowanc for Doubtfull Accounts	$30,600
		Revise balance in Account Receivable After Write off	$7,14,600
		Less: Balance in Allowanc for Doubtfull Accounts	$30,600
		Net Account receovable expected to be collected	$6,84,000
		Answer = $ 684,000