Question

At the end of 2021, Skysong Co. has accounts receivable of $690,100 and an allowance for doubtful accounts of $25,090. 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 $3,913. (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 $

Answer 1

Pageol Crkedlit Debit Allowance fo doubtful accounts. 3913 To Accousts Recievable 3913 To etord criteoff d acco curts ecevable b) Belore lWrik off Afton Wate off Cash Realigable Valua 665,010 665010 Caleulations G65,0 10 Belor wsita off = 610,100-5090 After wsite off G90 100-3913- 5090-3913 66 5,010