Account Title Debit Credit

Accounts Receivable $ 220,000

Allowance for Doubtful Accounts $ 7,200

On January 11, Len Palmer, a major customer, declares bankruptcy and thus, Winston determines that a receivable from Palmer in the amount of $3,400 is worthless.

Required:

(A) In the space provided, prepare the journal entry that Winston should record to write-off the account receivable from Len Palmer on January 11.

Date General Journal Debit Credit

20_

January 11

(B) Compute the net realizable value of Winston's accounts receivable at each of the following dates:

(1) January 10 (before write-off of Palmer's account).

(2) January 11 (immediately after write-off of Palmers' account).