BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and anallowance for doubtful accounts of $54,000. On January 24, 2018, the company learns thatits receivable from Megan Gray is not collectible, and management authorizes a write-offof $6,200.(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(2) after the write-off?11 BE9-7 Kingston Co. uses the percentage-of-receivables basis to record bad debt expense.It estimates that 1% of accounts receivable will become uncollectible. Accounts receivableare $420,000 at the end of the year, and the allowance for doubtful accounts has a creditbalance of $1,500.(a) Prepare the adjusting journal entry to record bad debt expense for the year.(b) If the allowance for doubtful accounts had a debit balance of $800 instead of a creditbalance of $1,500, determine the amount to be reported for bad debt expense.

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BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. (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 (2) after the write-off?

BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. (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 (2) after the write-off?

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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