Exercise 7-08

At the end of 2020, Sheffield Company has accounts receivable of $640,000and an allowance for doubtful accounts of $32,000. On January 16, 2021, Sheffield Company determined that its receivable from Ramirez Company of $4,800will not be collected, and management authorized its write-off.

Your answer is correct.

Prepare the journal entry for Sheffield Company to write off the Ramirez receivable.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 16, 2021

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Your answer is correct.

What is the net amount expected to be collected of Sheffield Company's accounts receivable before the write-off of the Ramirez receivable?

Net amount expected to be collected$

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What is the net amount expected to be collected of Sheffield Company's accounts receivable after the write-off of the Ramirez receivable?

Net amount expected to be collected