Management authorizes a write-off

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Reference no: EM13919070

At the end of 2013, Morley Co. has accounts receivable of $762,300 and an allowance for doubtful accounts of $26,990. On January 24, 2014, it is learned that the company's receivable from Spears Inc. is not collectible and therefore management authorizes a write-off of $4,830.

(a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off?

Reference no: EM13919070

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