Question
At the end of 2017, Cheyenne Corp. has accounts receivable of $1.2 million and an allowance for doubtful accounts of $78,000. On January 16, 2018,
At the end of 2017, Cheyenne Corp. has accounts receivable of $1.2 million and an allowance for doubtful accounts of $78,000. On January 16, 2018, Cheyenne determined that its $19,000 receivable from Oriole Company will not be collected, and management has authorized its write off. On January 31, 2018, Cheyenne received notification that the company will be receiving $0.15 for every $1.00 of accounts receivable relating to Ivanhoe Company The company had previously written off 100% of the amount due from Ivanhoe ($68,000).
a) Prepare the journal entry for Cheyenne Corp. to write off the Oriole receivable and any journal entry necessary to reflect the notice regarding Ivanhoe Company (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) To write off the Oriole accounts:
Ivanhoe Company reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible:
b) What is the estimated net realizable value of Cheyennes accounts receivable before and after the entries above? What is the book value of Cheyennes accounts receivable before and after the entries above?
Account Titles and Explanation Debit Credit Account Titles and Explanation Debit Credit Before After Adjustments Adjustments Net Realizable Value $ $ Book Value $ $Step by Step Solution
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