Answer:
Accounts Receivables 19900 debit
Sales Revenues 19900 credit
--to record sale--
COGS 14300 debit
Inventory 14300 credit
--to record COGS of the previous sale--
Cash 4,200 debit
Accounts Receivables 4,200 credit
--to record colelction from Beijing Palace Co--
Allowance for doubtful accounts 15,700 debit
Accounts Receivables 15,700 credit
--to record the write-off using allowance method--
Accounts Receivables 15,700 debit
Allowance for doubtful accounts 15,700 credit
--to record reversal when payment is received--
Cash 15,700 debit
Accounts receivables 15,700 credit
--to record collection from Beijing Palace Co--
Explanation:
We write-off the blaance of the account
19,900 - 4,200 = 15,700
Then, we have to reverse the entry to nulify it. Then we record the colelction like any other.
