Prepare entries for collection of bad debt write-off.
Assume the same information as BE8.4. On March 4, 2021, Chin Appliances receives payment of ¥6.200 in full from Megan Gray. Prepare the journal entries to record this transaction
Prepare entry for write-off; determine cash realizable value.
At the end of 2020, Chin Appliances has accounts receivable of ¥700,000 and an allowance for doubtful accounts of ¥54,000 (amounts in thousands). On January 24, 2021. the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of¥6,200.
a. Prepare the journal entry to record the write-off.
b. What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off?
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