At the end of 2019, Sorter plc has accounts receivable of 900,000 and an allowance for doubtful
Question:
At the end of 2019, Sorter plc has accounts receivable of £900,000 and an allowance for doubtful accounts of £40,000. On January 16, 2020, Sorter determined that its receivable from Ordonez Orchards £8,000 will not be collected, and management authorized its write-off.
Instructions
a. Prepare the journal entry for Sorter plc to write off the Ordonez receivable.
b. What is the cash realizable value of Sorter plc's accounts receivable before the write-off of the Ordonez receivable?
c. What is the cash realizable value of Sorter plc's accounts receivable after the write-off of the Ordonez receivable?
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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