At the end of 2016, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,140. 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 $4,210.(a) Prepare the journal entry to record the write-off.
(b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off?

The computation and journal entry is shown below.

Explanation:

According to the scenario, the computation of the given data are as follows:

(a). The journal entry are as follows:

Allowance for doubtful A/c Dr.   $4,210

To Accounts Receivable A/c   $4,210

(Being the amount write off is recorded)

(b). Cash realizable value before write off can be calculated as follows:

Cash realizable value before write off = Receivable balance - Doubtful A/c Allowance

By putting the value, we get

Cash realizable value before write off  = $635,600 - $23,140

= $612460

And ash realizable value after write off can be calculated as follows:

Cash realizable value before write off = ($635,600 - $4,210)- ($23,140 - $4,210)

= $612,460

answer; ///blank(1); security; blank(2); freedom; good luck

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%