At the end of 2016 Crane Company has accounts receivable of

At the end of 2016, Crane Company has accounts receivable of $713,800 and an allowance for doubtful accounts of $23,690.On January 24, 2017, it is from Madonna Inc. Is not collectible and therefore management authorizes a write-off of $3,885. learned that the company\'s recelvable to record the write-off. Enter 2016 amounts as beginning balances. (Enter negative amounts using either a negative sign preceding the parentheses e.g. (45).) nomber eg, AS or Assets s Liabilities + Stockholders Equity Allow. For Retained Earnings Accts. Rec.Doubtful Accts + Common StockRev. Exp. Beg, Bal. Jan. 24 Adj. Bal. ENTERACTIVE TUTORIAL What is the cash realizable value of the accounts receivable before the write-off and after the write-off Before Write-off After Write-Off Cash realizable value s

Solution

Tabular Summary :

Calculate cash relizable value of the account receivable :

	Assets	=	Liabilities	+	Stockholder\'s equity
			Allow. for						Retained Earnings
	Accts. Rec.	-	Doubtful Accts	=		+	Common stock	+	Rev.	-	Exp.
Beg. Bal	713800		23690
Jan 24	(3885)		(3885)
Adj. Bal	709915		19805