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App Inc. has the following: balance in the accounts receivable account $500,000; Bad debt expense balance $25,000 and the allowance for Doubtful accounts balance $50,000.
App Inc. has the following: balance in the accounts receivable account $500,000; Bad debt expense balance $25,000 and the allowance for Doubtful accounts balance $50,000. The cash realizable value of App's receivables is? Select one: Oa. $450,000 O b. $475,000 O c. $425,000 O d. $550,000 Black Inc. uses the allowance method for bad debts. Last year Black sold $5,000 of merchandise to Green on account. During the current year management determines that $3,000 of the amount due from Green will not be collected and writes off this amount. The journal entry to record the write off of the receivable is? Select one: Oa. Dr. Bad Debt Expense $3000. Cr. Allowance for Doubtful Accounts $3000 O b. Dr. Accounts Receivable $3000. Cr. Allowance for Doubtful Accounts $3000 O c. Dr. Allowance for Doubtful Accounts $3000. Cr. Sales Revenue $3000 O d. Dr. Allowance for Doubtful Accounts $3000. Cr. Accounts Receivable $3000
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