At the end of 2020, Teal Company has accounts receivable of $672,000 and an allowance for doubtful accounts of $33,600. On January 16, 2021, Teal Company determined that its receivable from Ramirez Company of $5,040 will not be collected, and management authorized its write-off.
A.What is the net amount expected to be collected of Teal Company’s accounts receivable after the write-off of the Ramirez receivable?
Net amount expected to be collected