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3 years ago, our company sold $40,000 of merchandise to Harrison D. Fault. He still hasn't paid us. In fact, we don't know where he
3 years ago, our company sold $40,000 of merchandise to Harrison D. Fault. He still hasn't paid us. In fact, we don't know where he is. Make the entry to write off this account using the allowance method. 6 months after we wrote off Harrison D. Fault's account, we were stunned when a check in the amount of $40,000 from Mr. Fault arrived in our mail. The clerk who normally records receipts of payment comes to you, the Chief Accountant, and says we have to send the check back to Mr. Fault, because we no longer have an account receivable. What do you say to the clerk besides "you're fired"? (How do we do the accounting?) You could answer by making a journal entry(ies), but that's not necessary. Be brief
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