At December 31, 2010, Grayson Company reported Accounts Receivable of $34,000 and Allowance for Doubtful Accounts of $3,500. On January 7, 2011, Duffy Enterprises declares bankruptcy and it is determined that the receivable of $1,200 from Duffy is not collectible.
1. What is the cash realizable value of Accounts Receivable at December 31, 2010?
2. What entry would Grayson make to write off the Duffy account?
3. What is the cash realizable value of Accounts Receivable after the Duffy account is written off?

Question

Quizplus · Accepted Answer

The Answer of At December 31, 2010, Grayson Company reported Accounts Receivable of $34,000 and Allowance for Doubtful Accounts of $3,500. On January 7, 2011, Duffy Enterprises declares bankruptcy and it is determined that the receivable of $1,200 from Duffy is not collectible.
1. What is the cash realizable value of Accounts Receivable at December 31, 2010?
2. What entry would Grayson make to write off the Duffy account?
3. What is the cash realizable value of Accounts Receivable after the Duffy account is written off?

At December 31, 2010, Grayson Company Reported Accounts Receivable of $34,000