In$-$Class Question $3$

At the end of $2021,$ Morley $Co.$ has accounts receivable of $$700,000$ and an allowance for doubtful accounts of $$25,000.$ On January $24,2022,$ it is learned that the company's receivable from Spears Inc. is not collectible and therefore management authorizes a write$-$off of $$4,300.$

Instructions

$($a$)$ Prepare the journal entry to record the write$-$off.

$($b$)$ What is the cash realizable value of the accounts receivable $(1)$ before the write$-$off and $(2)$ after the write$-$off