Write-Off of Uncollectible Account Receivable

question 229

Essay

Write-off of uncollectible account receivable
On January 10, Winston, Inc.'s trial balance included the following accounts:

On January 11, Len Palmer, a major customer, declares bankruptcy and thus, Winston determines that a receivable from Palmer in the amount of $3,400 is worthless.
(a) In the space provided, prepare the journal entry that Winston should record to write-off the account receivable from Len Palmer on January 11.

(b) Compute the net realizable value of Winston's accounts receivable at each of the following dates:
January 10 (before write-off of Palmer's account) $_______________
January 11 (immediately after write-off of Palmers' account) $_______________

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Definitions:

Yaw Sensor

A device in vehicles that detects the rotational movement around the vertical axis, critical for stability and traction control systems.

Solenoid Valve Body Assembly

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The gear- or belt-driven pump that supplies pressurized fluid to the steering gearbox.

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In an engine, air pressure that is lower than atmospheric pressure.