Exercise 7-8 At the end of 2017, Marigold Company has accounts receivable of $91

Question

Exercise 7-8 At the end of 2017, Marigold Company has accounts receivable of $917,900 and an allowance for doubtful accounts of $48,700. On January 16, 2018, Marigold Company determined that its receivable from Ramirez Company of $7,540 wil not be collected, and management authorized its write-off. Prepare the journal entry for Marigold Company to write off the Ramirez receivable. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Jan. 16, 2018 SHOW LIST OF ACCOUNTS LINK TO TEXT What is the net realizable value of Marigold Company's accounts receivable before the write-off of the Ramirez receivable? Net realizable value SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

16-Jan Allowance for doubtful accounts 7540                  Accounts receivable 7540 Before write off Accounts receivable (Gross) 917900 Allowance for doubtful accounts 48700 Net realizable value 869200 After write off Accounts receivable (Gross) 910360 Allowance for doubtful accounts 41160 Net realizable value 869200

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