At the end of 2012, Sorter Company has accounts receivable of $882,520 and an allowance for doubtful accounts of $41,880. On January 16, 2013, Sorter Company determined that its receivable from Ordonez Company of $6,480 will not be collected, and management authorized its write-off.
A. What is the net realizable value of Sorter Company's accounts receivable before the write-off of the Ordonez receivable?
B. What is the net realizable value of Sorter Company's accounts receivable after the write-off of the Ordonez receivable?