On December 31, 2014, Extreme Fitness has adjusted balances of
$960,000 in Accounts Receivable and $87,000 in Allowance for
Doubtful Accounts. On January 2, 2015, the company learns that
certain customer accounts are not collectible, so management
authorizes a write-off of these accounts totaling $26,000. a. What
amount would the company report as its net accounts receivable on
December 31, 2014? b. Prepare the journal entry to write off the
accounts on January 2, 2015. (If no entry is required for a
transaction/event, select “No Journal Entry Required” in the first
account field.) c-1. Assuming no other transactions occurred
between December 31, 2014, and January 3, 2015, what amount would
the company report as its net accounts receivable on January 3,
2015? c-2. Has Net Accounts Receivable changed from December 31,
2014? Yes No