On January 1,American Company's Allowance for Doubtful Accounts Had a Credit

question 109

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On January 1,American Company's allowance for doubtful accounts had a credit balance of $3,000.The balance in the Accounts Receivable account on that date was $75,000.On January 2,prior to any credit sales,a $500 account from National Company was deemed to be uncollectible and written off.
Required:
A.Compute the net realizable value of American's receivables on January 1.
B.Present the journal entry American would record on January 2 related to the write-off of National's account.
C.Compute the net realizable value of American's receivables on January 2, immediately following the write-off of National's account

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