BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and anallowance for doubtful accounts of $54,000. On January 24, 2018, the company learns thatits receivable from Megan Gray is not collectible, and management authorizes a write-offof $6,200.(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? 2:25l 4GSafariDonew9-questions (13 of 23)BE9-3 During its first year of operations, Gavin Company had credit sales of $3,000,000;$600,000 remained uncollected at year-end. The credit manager estimates that $31,000 ofthese receivables will become uncollectible.(a) Prepare the journal entry to record the estimated uncollectibles.(b) Prepare the current assets section of the balance sheet for Gavin Company. Assumethat in addition to the receivables it has cash of $90,000, inventory of $130,000, andprepaid insurance of $7,500.

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BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. (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?

BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. (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?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 66E: Bad Debt Expense: Percentage of Credit Sales Method Gilmore Electronics had the following data for a...

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