Write-off of uncollectible account receivable
On January 10,Winston,Inc.'s trial balance included the following accounts: On January 11,Len Palmer,a major customer,declares bankruptcy and thus,Winston determines that a receivable from Palmer in the amount of $3,400 is worthless.
(a)In the space provided,prepare the journal entry that Winston should record to write-off the account receivable from Len Palmer on January 11. (b)Compute the net realizable value of Winston's accounts receivable at each of the following dates:
January 10 (before write-off of Palmer's account)$________
January 11 (immediately after write-off of Palmers' account)$________

Question

Write-off of uncollectible account receivable
On January 10,Winston,Inc.'s trial balance included the following accounts:  On January 11,Len Palmer,a major customer,declares bankruptcy and thus,Winston determines that a receivable from Palmer in the amount of $3,400 is worthless.
(a)In the space provided,prepare the journal entry that Winston should record to write-off the account receivable from Len Palmer on January 11.  (b)Compute the net realizable value of Winston's accounts receivable at each of the following dates:
January 10 (before write-off of Palmer's account)$________
January 11 (immediately after write-off of Palmers' account)$________

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The Answer of Write-off of uncollectible account receivable
On January 10,Winston,Inc.'s trial balance included the following accounts:  On January 11,Len Palmer,a major customer,declares bankruptcy and thus,Winston determines that a receivable from Palmer in the amount of $3,400 is worthless.
(a)In the space provided,prepare the journal entry that Winston should record to write-off the account receivable from Len Palmer on January 11.  (b)Compute the net realizable value of Winston's accounts receivable at each of the following dates:
January 10 (before write-off of Palmer's account)$________
January 11 (immediately after write-off of Palmers' account)$________

Write-Off of Uncollectible Account Receivable