At the end of 1996 , Searcy Co. has accounts receivable of \(\$ 700,000\) and an allowance for doubtful accounts of \(\$ 54,000\). On January 24,1997 , it is learned that the company's receivable from Hutley Inc. is not collectible and therefore management authorizes a write-off of \(\$ 8,000\).

(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?