E7-8B (Recording Bad Debts) At the end of 2014 Sanchez Company has accounts receivable of $400000 and an allowance for doubtful accounts of $20000. On January 16 2015 Sanchez Company determined that its receivable from Maximillan Company of $3000 will not be collected and management authorized its write-off.Instructions(a) Prepare the journal entry for Sanchez Company to write off the Maximillan receivable.(b) What is the net realizable value of Sanchez Companys accounts receivable before the write-off of the Maximillan receivable?(c) What is the net realizable value of Sanchez Companys accounts receivable after the write-off of the Maximillan receivable?
