At the end of 2004, Searcy Hotel has accounts receivable of $700,000 and an allowance for doubtful

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At the end of 2004, Searcy Hotel has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2005, the company learns that its receivable from Hunt Inc. is not collectible, and management authorizes a write-off of $7,000. LO4

(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?

(c) On March 4, 2005, Searcy Hotel receives payment of $7,000 in full from Hunt Inc. Prepare the journal entries to record this transaction.

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Hospitality Financial Accounting

ISBN: 9780471270553

1st Edition

Authors: Jerry J Weygandt, Donald E Kieso, Paul D Kimmel, Agnes L DeFranco

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