At the end of 2012, Henderson Co. has accounts receivable of $806,490 and an allowance for doubtful accounts of $61,580. On January 24, 2013, the company learns that its receivable from Jaime Lynn is not collectible, and management authorizes a write-off of $6,180.
(a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Account Titles and Explanation
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Debit
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Credit
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(b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off?
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Before Write-Off
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After Write-Off
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| Cash realizable value |
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$ |
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$ |
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