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At the end of 2011, Delong Co. has accounts receivable of
$700,000 and an allowance
for doubtful accounts of $54,000. On January 24, 2012, the
company learns that its receivable
from Ristau Inc. 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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