Coda sold on credit 2,500 KSX baseball gloves for $50,000 to S-Mart in November 2017. Q-Mart is a large public company, with retail stores across Canada and the U.S. Around year end, analysts have begun reporting that S-Mart is having serious financial difficulties and may file for bankruptcy if its lenders do not restructure its debt. S-Marts share price has plummeted in recent weeks. The CEO has suggested to the controller to write off the $50,000 account receivable, as he would like the company to applicable for a government grant and such would like to show financial need.

Required:

What is the appropriate action to be taken by the controller in accordance with ASPE when preparing 2017 year end financials. Show JE (and calculations) if any.