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    Recording Bad Debts

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    I am trying to get a jump start on my holiday break for the rest of this course. I have assignments covering this topic in my coursebook.

    8. (Recording Bad Debts) At the end of 2004 Juarez Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2005, Juarez Company determined that its receivable from Maximillan Company of $6,000 will not be collected, and management authorized its write-off.
    Instructions
    a. Prepare the journal entry for Juarez Company to write off the Maximillan
    receivable.
    b. What is the net realizable value of Juarez Company's accounts receivable before
    the write-off of the Maximillan receivable?
    c. What is the net realizable value of Juarez Company's accounts receivable after
    the write-off of the Maximillan receivable?

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    Solution Preview

    Prepare the journal entry for Juarez Company to write off the Maximillan
    receivable.
    BAD DEBTS A/C DR. 6000
    TO MAXMILLAN COMPANY 6000
    ( Being ...

    Solution Summary

    This provides the steps to record Bad Debts

    $2.19

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