At the end of 2017, Splish Company has accounts receivable of $901,300 and an allowance for doubtful accounts of $49,500. On January 16, 2018, Splish Company determined that its receivable from Ramirez Company of $7,310 will not be collected, and management authorized its write-off.
Prepare the journal entry for Splish Company to write off the Ramirez receivable. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
What is the net realizable value of Splish Company’s accounts receivable before the write-off of the Ramirez receivable?
Please Show calculations.