Question

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,200 account of a customer, C. Green. On March 9, it receives a $1,700 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green.

Answer 1

Answer::

A journal entry is the act of keeping or making records of any transactions. These transactions are listed in an accounting journal that shows a company's debit and credit balances.

Using the data in the question (above), the journal entries for January 31 and March 09 go as follows:

No ------------------Date----------------General Journal------------- Debit-----------Credit

1. Jan 31 --------Alowance for doubtful accounts ------- $2,200 (Debit)

-- ------------------ Accounts receivable—C. Green -------- $2,200 (Credit)

2. Mar 09 -------Accounts receivable—C. Green --------$1,700 (Debit)

----_----------------Allowance for doubtful accounts ------ $1,700 (Credit)

3. Mar 09 ------- Cash ---------- $1,700 (Debit)

-----------------------Accounts receivable—C. Green -------- $1,700 (Debit)

Answer 2

Answer:

31 Jan

Debit allowance for doutful debts $2200 and credit Accounts Receivables $2200

Mar 9 Debit accounts Receivable $1700 and credit Allowance for doubtful debt $ 1700

Mar 9 Debit cash $1700 and Credit Account receivable $1700

Explanation:

When a customer account becomes certain to be uncollectible, it must be written off by debiting the allowance for doubful debt and then when the customer pays we credit the allowance for doubtful debt and debit accounts receivables to reverse the account written of and then finally debit cash and credit account receivables to account for cash received.