On January 1,American Company's allowance for doubtful accounts had a credit balance of $3,000.The balance in the Accounts Receivable account on that date was $75,000.On January 2,prior to any credit sales,a $500 account from National Company was deemed to be uncollectible and written off.
A.Compute the net realizable value of American's receivables on January 1.
B.Prepare the journal entry American would record on January 2 related to the write-off of National's account.
C.Compute the net realizable value of American's receivables on January 2,immediately following the write-off of National's account.

Question

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The Answer of On January 1,American Company's allowance for doubtful accounts had a credit balance of $3,000.The balance in the Accounts Receivable account on that date was $75,000.On January 2,prior to any credit sales,a $500 account from National Company was deemed to be uncollectible and written off.
A.Compute the net realizable value of American's receivables on January 1.
B.Prepare the journal entry American would record on January 2 related to the write-off of National's account.
C.Compute the net realizable value of American's receivables on January 2,immediately following the write-off of National's account.

On January 1,American Company's Allowance for Doubtful Accounts Had a Credit