Exercise 7-8

At the end of 2014, Aramis Company has accounts receivable of $920,700 and an allowance for doubtful accounts of $47,150. On January 16, 2015, Aramis Company determined that its receivable from Ramirez Company of $7,130 will not be collected, and management authorized its write-off.

Prepare the journal entry for Aramis Company to write off the Ramirez receivable

What is the net realizable value of Aramis Companys accounts receivable before the write-off of the Ramirez receivable?

What is the net realizable value of Aramis Companys accounts receivable after the write-off of the Ramirez receivable?