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Question - At the end of 2012, Henderson Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2013, the company learns that its receivable from Jaime Lynn is not collectible, and management authorizes a write-off of $5,400.
(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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