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a. Prepare the journal entry to record the write-off. b. What is the cash realizable value of the accounts receivable (1) before the write-off and after the write-off?

a. Prepare the journal entry to record the write-off. b. What is the cash realizable value of the accounts receivable (1) before the write-off and after the write-off?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. Waran Co. has accounts receivable of $500,000 and an allowance for doubtful accounts of $20,000 at the end of 2015. On January 10, 2016, the company learns that its receivable from Ted Inc. is not collectible, and management authorizes a write-off of $3,000.
a. Prepare the journal entry to record the write-off.
b. What is the cash realizable value of the accounts receivable (1) before the write-off and after the write-off?

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