At the end of 2019, AlGhanem Company has accounts receivable of KW700,000 and an allowance for doubtful accounts of KW 50,000. On January 30, 2020, AlGhanem Company determined that its receivable from Al Shayaa Co. KW 10,000 will not be collected, and management authorized its write-off.

Instructions

a. Prepare the journal entry for AlGhanem Company to write off the Al Shayaa receivable.

b. What is the cash realizable value of AlGhanem Company's accounts receivable before the write-off of the Al Shayaa receivable?

c. What is the cash realizable value of AlGhanem Company 's accounts receivable after the write-off of the Al Shayaa receivable?