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View Full Version : E7-8 (Recording Bad Debts) At the end of 2007 Aramis Company has accounts receivable


Superb1
Feb 24, 2010, 02:19 PM
E7-8 (Recording Bad Debts) At the end of 2007 Aramis Company has accounts receivable of $800,000 and
an allowance for doubtful accounts of $40,000. On January 16, 2008, Aramis Company determined that its receivable
from Ramirez Company of $6,000 will not be collected, and management authorized its write-off.

Instructions

(a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable.
(b) What is the net realizable value of Aramis Company’s accounts receivable before the write-off of
the Ramirez receivable?
(c) What is the net realizable value of Aramis Company’s accounts receivable after the write-off of
the Ramirez receivable?

morgaine300
Feb 26, 2010, 12:42 AM
Please see the guidelines for posting homework problems:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html