Question 1 At the end of 2017, Larkspur Company has accounts receivable of $890,

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Question 1 At the end of 2017, Larkspur Company has accounts receivable of $890,200 and an allowance for doubtful accounts of $45,700. On January 16, 2018, Larkspur Company determined that its receivable from Ramirez Company of $7,620 will not be collected, and management authorized its write-off. Prepare the journal entry for Larkspur Company to write off the Ramirez receivable. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 16, 2018 SHOW LIST OF ACCOUNTS What is the net realizable value of Larkspur Company's accounts receivable before the write-off of the Ramirez receivable? Net realizable value SHOW LIST OF ACCOUNTS What is the net relizable vaue of Larkspur Company's accounts receivable after the write-off of the Ramirez receivable? Net realizable value

Explanation / Answer

Jan-16 Allowance for doubtful accounts 7620          Accounts receivable 7620 Net realizable value before write off =890200-45700= 844500 Net realizable value after write off =(890200-7620)-(45700-7620)= 844500

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