At the end of 2020, Swifty Corporation has accounts receivable of $2.80 million and an allowance for doubtful accounts of $137,500. On January 16, 2021, Swifty determined that its $23,100 receivable from Wildhorse Co. will not be collected, and management has authorized its write off. On January 31, 2021, Swifty received notification that the company will be receiving $0.10 for every $1.00 of accounts receivable relating to Sandhill Co. The company had previously written off 100% of the amount due from Sandhill ($64,500).

QUESTION:

Prepare the journal entry for Swifty Corporation to write off the Wildhorse receivable and any journal entry necessary to reflect the notice regarding Sandhill Co.

a) Journal entry: To write off the Wildhorse accounts:

b) Journal entry: Sandhill Co. reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible:

Question

At the end of 2020, Swifty Corporation has accounts receivable of $2.80 million and an allowance for doubtful accounts of $137,500. On January 16, 2021, Swifty determined that its $23,100 receivable from Wildhorse Co. will not be collected, and management has authorized its write off. On January 31, 2021, Swifty received notification that the company will be receiving $0.10 for every $1.00 of accounts receivable relating to Sandhill Co. The company had previously written off 100% of the amount due from Sandhill ($64,500).

QUESTION:

Prepare the journal entry for Swifty Corporation to write off the Wildhorse receivable and any journal entry necessary to reflect the notice regarding Sandhill Co.

a) Journal entry: To write off the Wildhorse accounts:

b) Journal entry: Sandhill Co. reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible:

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Question

At the end of 2020, Swifty Corporation has accounts receivable of $2.80 million and an allowance for doubtful accounts of $137,500. On January 16, 2021,

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