At the end of 2017, Pina Company has accounts receivable of $862,800 and an allo

Question

At the end of 2017, Pina Company has accounts receivable of $862,800 and an allowance for doubtful accounts of $42,100. On January 16, 2018, Pina Company determined that its receivable from Ramirez Company of $6,430 will not be collected, and management authorized its write-off.

Prepare the journal entry for Pina Company to write off the Ramirez receivable.

What is the net realizable value of Pina Company’s accounts receivable before the write-off of the Ramirez receivable?

At the end of 2017, Pina Company has accounts receivable of $862,800 and an allowance for doubtful accounts of $42,100. On January 16, 2018, Pina Company determined that its receivable from Ramirez Company of $6,430 will not be collected, and management authorized its write-off.

Explanation / Answer

Journal entry :

Calculate net realizable value :

Date accounts & explanation debit credit Allowance for doubtful accounts 6430 Account receivable 6430

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