Candy CoHad Accounts Receivable Totalling $450,000 and an Allowance for Doubtful

Short Answer

Candy Co.had accounts receivable totalling $450,000 and an allowance for doubtful accounts with a balance of $5,000 on June 1, 2011.On June 2 Candy wrote off $7,500 of uncollectible accounts.The net carrying value of accounts receivable before and after the write-off was: $\begin{array} { l }& \text {Before }& \text { After }\\\hlinea. & \$ 450,000 &\$ 442,500 \\b. & \$ 445,000& \$ 442,500 \\c. &\$ 445,000& \$ 452,500 \\d.&\$ 445,000 &\$ 457500 \\\end{array}$