Chapter 9, Problem 7QS

Reporting allowance for doubtful accounts P2

On December 31 of Swift Co.' s First year. $50,000 of accounts receivable is not yet collected. Swift estimates that S2.000 of its accounts receivable is uncollectible and recorded the year-end adjusting entry.
1. Compute the realizable value of accounts receivable reported on Swiff’s year-end balance sheet.
2. On January 1 of Swift's second year, it writes off a customer's account for S300. Compute the realizable value of accounts receivable on January 1 after the write-off.