Final answer:
The correct answer to the question regarding the expected amount of Accounts Receivable to be collected after a $32,000 write-off is $400,000. This is because the write-off adjusts both the Accounts Receivable and the Allowance for Doubtful Accounts perpendicularly, leaving the net amount of receivables to be collected unchanged.
Step-by-step explanation:
When Kiner Company decided to write off an uncollectible account worth $32,000, it had to adjust its Accounts Receivable and Allowance for Doubtful Accounts. The write-off entry typically involves debiting the Allowance account and crediting the Accounts Receivable account. This means that the company acknowledges that it will not be able to collect the $32,000 from one of its debtors, but since this amount was already anticipated as potentially uncollectible, it doesn't affect the net amount of receivables expected to be collected directly.
Prior to the write-off, the Accounts Receivable stood at $400,000, and the Allowance account had a balance of $36,000. The key here is that the Allowance for Doubtful Accounts is a contra-asset account, which means it reduces the overall balance of Accounts Receivable shown on the balance sheet. However, when a specific uncollectible account is written off, the reduction in the Accounts Receivable is offset by the reduction in the Allowance for Doubtful Accounts, leaving the net Accounts Receivable unaffected. Thus, after the write-off, the amount expected to be collected remains $400,000, as the write-off does not involve any exchange of cash or alteration to the accounts other than the specific bad debt that was anticipated.
The correct answer to the question, "What is the accounts receivable amount expected to be collected after the write-off entry?" would be $400,000 (Option a). This is because the write-off entry does not change the net Accounts Receivable; it simply clears the specific uncollectible account from the books while reducing the allowance set aside for such situations.