Brief Exercise 8-3 At the end of 2016, Blossom Company has accounts receivable o

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Brief Exercise 8-3 At the end of 2016, Blossom Company has accounts receivable of $691,500 and an allowance for doubtful accounts of $25,740. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $3,943 (a) 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 (b) 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 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS

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Accounts Titles & Explanations

Debit

Credit

Allowance for Doubtful Accounts

$3943

Accounts receivables

$3943

(amount written off)

Before write-off

After Write-Off

Accounts receivables

$691500

[691500 – 3943] $687557

(-) Allowance for Doubtful accounts

$25740

[25740 – 3943] $21797

Cash realizable Value

$665,760

$665,760

Accounts Titles & Explanations

Debit

Credit

Allowance for Doubtful Accounts

$3943

Accounts receivables

$3943

(amount written off)

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