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What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off?

What is the cash realizable value of the accounts receivable (1) before the write-off and (2) 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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I am completely lost on how to find the net realizable values

At the end of 2021, Skysong, Inc. has accounts receivable of $750,300 and an allowance for doubtful accounts of $44,300. 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 $6,100. (a) Your answer is correct. Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Account Titles and Explanation Allowance for Doubtful Accounts Accounts Receivable eTextbook and Media List of Accounts Using multiple attempts will impact your score. 15% score reduction after attempt 2 Your answer is incorrect. Cash realizable value $ eTextbook and Media List of Accounts Before Write-Off What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off? 705700 Save for Later Using multiple attempts will impact your score. 15% score reduction after attempt 2 Debit $ 6100 After Write-Off Credit 661400 6100 Attempts: 2 of 3 used Attempts: 1 of 3 used Submit Answer
Transcribed Image Text:At the end of 2021, Skysong, Inc. has accounts receivable of $750,300 and an allowance for doubtful accounts of $44,300. 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 $6,100. (a) Your answer is correct. Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Account Titles and Explanation Allowance for Doubtful Accounts Accounts Receivable eTextbook and Media List of Accounts Using multiple attempts will impact your score. 15% score reduction after attempt 2 Your answer is incorrect. Cash realizable value $ eTextbook and Media List of Accounts Before Write-Off What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off? 705700 Save for Later Using multiple attempts will impact your score. 15% score reduction after attempt 2 Debit $ 6100 After Write-Off Credit 661400 6100 Attempts: 2 of 3 used Attempts: 1 of 3 used Submit Answer
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