At the end of 1998, Searcy Co. has accounts receivable of \(\$ 700,000\) and an allowance for doubtful accounts of \(\$ 54,000\). On January 24,1999 , it is learned that the company's receivable from Hutley Inc. is not collectible and therefore management au-

Record basic accounts thorizes a write-off of \(\$ 8,000\). receivable transactions. receivables. (SO 2)

(SO 1)

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

(b) What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off?