Exercise 78 At the end of 2017 Grouper Company has accounts

Exercise 7-8 At the end of 2017, Grouper Company has accounts receivable of $880,700 and an allowance for doubtful accounts of $44,200. On January 16, 2018, Grouper Company determined that its receivable from Ramirez Company of $6,690 will not be collected, and management authorized its write-off Prepare the journal entry for Grouper Company to write off the Ramirez receivable. (If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit Jan. 16, 2018 HOW LIST OF ACCOUNTS LINK TO TEXT What is the net realizable value of Grouper Company\'s accounts receivable before the write-off of the Ramirez receivable? Net realizable value SHOW LIST OF ACCOUNTS LINK TO TEXT What is the net realizable value of Grouper Company\'s accounts receivable after the write-off of the Ramirez receivable? Net realizable value

Solution

Date Account titles and Explanations Debit credit 1/16/2018 Allowance for doubtful accounts 6,690 Accounts receivable 6,690 Net realizable value before write off Account receivable 880,700 less:allowance for doubtful accounts -44,200 Net realizable value before write off 836,500 net realizable value after write off account receivable 874,010 less allowance for doubtful accounts -37510 net realizable value after write off 836,500