Paula, a customer of the Emil Sales Corp. purchased a $4500 of merchandise 2 years ago from the company on account. Paula has just filed for bankruptcy. Emil has a total Account Receivable balance of $150,000 (including Paula's) and an allowance for doubtful accounts credit balance of $25,000.
1.What is the Cash Realizable Value before the write-off?
2. What is the Journal Entry to write-off Paula's account?