Question

At the end of 2019, Blossom Company has accounts receivable of $756,900 and an allowance for doubtful accounts of $59,600. On January 24, 2020, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $5,800. On March 4, 2020, Blossom Company receives payment of $5,800 in full from Megan Gray. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To reverse write-off) (To record collection from Gray)

Answer 1

Answer:

Explanation:

Adjusting entries:      

S.no. Accounts title and explanation  Debit $       Credit $

a.         Accounts receivable           5800  

   

      Allowance for doubtful accounts                                   5800

     

       (for reversing the write off)    

b.  Cash account                          5800  

         

         Accounts receivable                                             5800

         (for cash collection from write off account)