Question

At the end of 2016, safer co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. on january 24, 2017, it is learned that the company's receivable from madonna inc. is not collectible and therefore management authorizes a write-off of $4,300.

Answer 1

Accounts Receivable before the write off: (700,000-25,000) = 675,000 Accounts Receivable after write off: (700-4300)-(25000-4300)=675,000