At the end of 2011, Searcy Corp. has accounts receivable of $600,000 and an allowance for doubtful

Question:

At the end of 2011, Searcy Corp. has accounts receivable of $600,000 and an allowance for doubtful accounts of $36,000. On January 24, 2012, Searcy learns that its $8,000 receivable from Hutley Inc. is not collectible. Management authorizes a write-off.

(a) Prepare the journal entry to record the write-off.

(b) What is the net realizable value of the accounts receivable

(1) Before the write-off

(2) After the write-off

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...