At the end of 2006. Endrun Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24. 2007. the company learns that its receivable from Oswego Inc. is not collectible, and management authorizes a write-off of $6,400.

(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?