Brief Exercise 9-04 a-b At the end of 2020, Cullumber Co. has accounts receivabl

Question

Brief Exercise 9-04 a-b At the end of 2020, Cullumber Co. has accounts receivable of $714,600 and an allowance for doubtful accounts of $71,900. On January 24, 2021, the company learns that its recelvable from Megan Gray is not collectible, and management authorizes a write-off of $6,800. Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-off After Write-Off Cash realizable value

Explanation / Answer

Account Title and Explanation Debit ($) Credit ($) Allowance for Doubtful Accounts                6,800 Accounts Receivable           6,800 (Account written off) Cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write off After Write off                               642,700            642,700 (714,600-71,900)

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