At the end of 2017, Perez Corporation has accounts receivable of $2.5 million and an allowance for doubtful accounts of $120,000. On January 16, 2018, Perez determined that its $20,000 receivable from Morganfield Ltd. will not be collected, and management has authorized its write off. On January 31, 2018, Perez received notification that the company will be receiving $0.10 for every $1.00 of accounts receivable relating to McKinley Ltd. The company had previously written off 100% of the amount due from McKinley ($60,000). *(a) Your answer is correct. Prepare the journal entry for Perez Corporation to write off the Morganfield receivable and any journal entry necessary to reflect the notice regarding McKinley Ltd. (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 o for the amounts.) To write off the Morganfield accounts: Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts 120,000 5 TAccounts Receivable 120,000 McKinley Ltd. reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible: Account Titles and Explanation Debit Credit Accounts Receivable 76,000 5 Allowance for Doubtful Accounts 275,000 16V Attempts: 1 of 4 used *(b) x Your answer is incorrect. Try again. What is the estimated net realizable value of Perez's accounts receivable before and after the entries above? What is the book value of Perez's accounts receivable before and after the entries above? Before Adjustments After Adjustments 12,500,000 Net Realizable Value su 2,486,000 380.000 2380000 Book Value