What is the net realizable value of sanchez companys, Ask an Expert

Accounting

At the end of 2012 Sanchez Company has accounts receivable of $400,000 and an allowance for doubtful accounts of $20,000. On January 16, 2013, Sanchez Company determined that its receivable from Maximillan Company of $3,000 will not be collected, and management authorized its prepare-off.

Instructions:

(a) Prepare the journal entry for Sanchez Company to prepare off the Maximillan receivable.

(b) What is the net realizable value of Sanchez Company's accounts receivable before the prepare-off of the Maximillan receivable?

(c) What is the net realizable value of Sanchez Company's accounts receivable after the prepare-off of the Maximillan receivable?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M960922

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