question at the end of 2016 whispering winds corp has accounts receivable of 749 900 4281125
At the end of 2016, Whispering Winds Corp. has accounts receivable of $749,900 and an allowance for doubtful accounts of $23,580. On January 24, 2017, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,564.
(a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off?
Brief Exercise 8-3
Allowance for Doubtful Accounts
Bad Debts Expense
Cost of Goods Sold
Income Tax Expense
Income Taxes Payable
Other Operating Expenses
Sales Returns and Allowances
Service Charge Expense