Question
end of 2017: ABC Corporation has AR of $2.25 mil and an allowance for doubtful accounts of $116,500. On January 16, 2018: ABC decided that
end of 2017:
ABC Corporation has AR of $2.25 mil and an allowance for doubtful accounts of $116,500.
On January 16, 2018:
ABC decided that its $23,700 receivable from XYZ Inc. wont be collected, and management has approved its write off.
On January 31, 2018:
ABC found out it will be receiving $0.15 for every $1.00 of AR relating to ASD Inc. The company had previously written off 100% of the amount due from ASD ($65,500).
(a) journal entry for ABC Corporation to write off the ASD Inc. receivable and any journal entry necessary to reflect the notice regarding XYZ Inc.
(b) estimated net realizable value and book value of ABC's accounts before and after the above entries?
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
3rd Edition
0730364577, 978-0730364573
