Brief Exercise 8-3

At the end of 2013, Morley Co. has accounts receivable of $734,200 and an allowance for doubtful accounts of $24,410. On January 24, 2014, it is learned that the companys receivable from Spears Inc. is not collectible and therefore management authorizes a write-off of $4,260.

Brief Exercise 8-3 At the end of 2013, Morley Co. has accounts receivable of $734,200 and an allowance for doubtful accounts of $24,410. On January 24, 2014, it is learned that the company's receivable from Spears Inc. is not collectible and therefore management authorizes a write-off of $4,260. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-off After write-off Cash realizable value Click if you would like to show work for this question Open Show Work