
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
On December 31 of Swift Co.’s first year, $55,000 of
- (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 $400. Compute the realizable value of accounts receivable on January 1 after the write-off.

Transcribed Image Text:On December 31 of Swift Co.'s first year, $55,000 of accounts recelvable is not yet collected. Swift estimates that $2.500 of Its accounts
recelvable is uncollectible and records the year-end adjusting entry.
(1) Compute the realizable value of accounts recelvable 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 $400. Compute the realizable value of accounts recelvable on
January 1 after the write-off.
Before Write-
Off
After Write-Off
Realizable value of accounts receivable
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