At the end of 2011, Delong Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On…

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At the end of 2011, Delong Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On…

At the end of 2011, Delong Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2012, the company learns that its receivable from Ristau Inc. is not collectible, and management authorizes a write-off of $5,400. (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?

 

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