At the end of 2016, Swifty Corporation has accounts receivable of $673,200 and a

Question

At the end of 2016, Swifty Corporation has accounts receivable of $673,200 and an allowance for doubtful accounts of $24,010. 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 $4,147.

(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

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Answer =A Account Title and explanation Debit Credit Allowance for Doubtfull Account $                        4,147.00       To Account Receivable Accolunt                              4,147 (Being bad debts write off) Answer = B Cash Realizable Value Before Write off After Write off Account Recievable                            6,73,200                        6,73,200 Less: Write off                                         -                                4,147 Less: Allwance For Doubtfull                                24,010                           19,863 ($ 24,010 - $ 4147) Cash Realizable Value                            6,49,190                        6,49,190

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.