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Question - On December 31 of Swift Co.'s first year, $69,000 of accounts receivable is not yet collected. Swift estimates that $3,900 of its accounts receivable is uncollectible and records the year-end adjusting entry.
Required -
(1) Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet.
(2) On January 1 of Swift's second year, it writes off a customer's account for $500. Compute the realizable value of accounts receivable on January 1 after the write-off.
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