At the end of 2014 Sanchez Company has accounts receivable of $400,000 and an allowance for doubtful

Question:

At the end of 2014 Sanchez Company has of $400,000 and an allowance for doubtful accounts of $20,000. On January 16, 2015, Sanchez Company determined that its receivable from Maximillan Company of $3,000 will not be collected, and management authorized its write-off.

Instructions
(a) Prepare the journal entry for Sanchez Company to write off the Maximillan receivable.
(b) What is the net realizable value of Sanchez Company’s before the write-off of the Maximillan receivable?
(c) What is the net realizable value of Sanchez Company’s after the write-off of the Maximillan receivable?

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...