Question

please help with this accounting question!

Question 1 /1 View Policies Current Attempt in Progress At the end of 2021, Kingbird Co. has accounts receivable of $762,000 and an allowance for doubtful accounts of $22,520.On January 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,398 (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 recelvable before the write-off and after the write-off? After Write-Off Before Write-Off Cash realizable value eTextbook and Media List of Accounts

Answer 1

Debit Credit Date Description $ 24-01-2022 Bad debts Expense 4,398.00 Allowance for doubtful accounts $4,398.00 (To record Bad debt expense) Explanataion 'Bad debt expense' is charged as expense $4,398 which is written off from the provison of Allowance for Doubtful accounts The question does not tells to create Provison hence no such Journal entry is passed for creation of Allowance for doubtful accounts Before Write- Particulars Off After Write-off $7,62,000.00 $7,62,000.00 Accounts Receivables 22,520.00 $ 26,918.00 $7,39,480.00 $ 7,35,082.00 Less: Allowance for Doubtful Accounts Cash Realizable

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