BE 5
At December 31, 2008, Attwood Company reported Accounts Receivable of $34,000 and
Allowance for Doubtful Accounts of $3,500. On January 7, 2009, Brady Enterprises declares
bankruptcy and it is determined that the receivable of $1200 from Brady is not collectible.
1. What is the cash realizable value of Accounts Receivable at December 31, 2008?
2. What entry would Attwood make to write off the Brady account?
3. What is the cash realizable value of Accounts Receivable after the Brady account is written
off?