At the end of 2013, Morley Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000.
1. On January 24, 2014, it is learned that the company's receivable from Spears Inc. is not collectible and therefore management authorizes a write-off of $4,300.
2. On March 4, 2014, Morley Co. receives payment of $4,300 in full from Spears Inc.