Question

On December 31, 2020, Whispering Winds Corp. estimated that 3% of its net accounts receivable of $408,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. The allowance account had a zero balance before adjustment on December 31, 2020. On May 11, 2021, Whispering Winds Corp. determined that the Jeff Shoemaker account was uncollectible and wrote off $2,040. On June 12, 2021, Shoemaker paid the amount previously written off.

Answer 1

Answer:

Explanation:

To answer this question comprehensively, we are expected to prepare the journal entries (which is the act of making or keeping the records of any transactions either for non economic or for Economic purposes. The Transactions are scheduled in an accounting record book and it reveals a company's debit and credit balances.) On December 31, 2019, May 11, 2020, and June 12, 2020.

kindly check the attached images below to get the diagram showing all the step by step journal entries we are to prepare.