Prepare the journal entry to record the write-off

At the end of 2004, Searcy Hotel has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2005, the company learns that its receivable from Hunt Inc. is not collectible, and management authorizes a write-off of $7,000.

(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?

(c) On March 4, 2005, Searcy Hotel receives payment of $7,000 in full from Hunt Inc. Prepare the journal entries to record this transaction.


Looking for help with your homework?
Grab a 30% Discount and Get your paper done!

30% OFF
Turnitin Report
Title Page
Place an Order

Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -