Question

At the end of 2016, wildhorse co. has accounts receivable of $690,100 and an allowance for doubtful accounts of $25,090. 1. on january 24, 2017, it is learned that the company's receivable from madonna inc. is not collectible and therefore management authorizes a write-off of $3,913. 2. on march 4, 2017, wildhorse co. receives payment of $3,913 in full from madonna inc.

Answer 1

Answer:

See explanation section.

Explanation:

January 24, Allowance for doubtful accounts Debit        $3,913

Accounts receivable                                          Credit        $3,913

To record the write - off of accounts receivable.

March 04, Accounts receivable      Debit     $3,913

Allowance for doubtful accounts    Credit    $3,913

To record the reinstatement of uncollectible from the receivable account.

March 04, Cash         Debit      $3,913

Accounts receivable Credit     $3,913

To record the unexpected payment from madonna inc.