Question

Brief Exercise 9-04 a-b At the end of 2020, Sandhill Co. has accounts receivable of $755,200 and an allowance for doubtful accounts of $60,200. On January 24, 2021, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,600. 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 SHOW LIST OF ACCOUNTS LINK TO TEXT 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 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Journal entry for write-off

Account title Debit Credit

Allowance for doubtful account 6600

Account receivable 6600

Realizable value = Gross account receivable - Allowance for doubtful account

Before write off = 755200 - 60200 = 695000

After write off = (755200 - 6600) - (60200 - 6600) = 695000