8.1 During its first year of operations, Energy Solutions had credit sales of 3,000,000; 600,000 remained uncollected at year-end. The credit manager estimates that 31,000 of these receivables will become uncollectible.

a. Prepare the journal entry to record the estimated uncollectibles.

b. Prepare the current assets section of the statement of financial position for Energy Solutions. Assume that in addition to the receivables it has cash of 90,000, inventory of 130,000, and pre-paid insurance of 7,500.

8.2 At the end of 2020, Chin Appliances has accounts receivable of 700,000 and an allowance for doubtful accounts of 54,000 (amounts in thousands). On January 24, 2021, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of 6,200.

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?