Question
At December 31, 2020, Bilgin Inc. reported Accounts Receivable of $700,000 and Allowance for Doubtful Accounts of $3,500. On March 20, 2021, Tasdemir Inc. (one
At December 31, 2020, Bilgin Inc. reported Accounts Receivable of $700,000 and Allowance for Doubtful Accounts of $3,500. On March 20, 2021, Tasdemir Inc. (one of the customers of Bilgin Inc.) declares bankruptcy and it is determined that the receivable of $1,600 from Tasdemir is not collectible. c. What is the cash realizable value of Accounts Receivable at December 31, 2020? d. What entry would Bilgin make to write off the Tasdemir account? e. What is the cash realizable value of Accounts Receivable after the Tasdemir account is written off? f. What entry would Bilgin make to recover the write off for Tasdemir account if Tasdemir pays later?
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