Question
At the end of 2021, Marin Co. has accounts receivable of $896,000 and an allowance for doubtful accounts of $32,000. On January 24, 2022, it
At the end of 2021, Marin Co. has accounts receivable of $896,000 and an allowance for doubtful accounts of $32,000. On January 24, 2022, it is learned that the companys receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $5,504.
(a)
Use a tabular summary to record the write-off. Enter 2021 amounts as beginning balances. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Assets | = | Liabilities | + | Stockholders' Equity | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Retained Earnings | |||||||||||||||
Accts. Rec. | - | Allow. For Doubtful Accts | = | + | Common Stock | + | Rev. | - | Exp. | ||||||
Beg. Bal. | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||||||||
Jan. 24 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||||||
Adj. Bal. | enter the adjusted balance | enter the adjusted balance | enter the adjusted balance | enter the adjusted balance | enter the adjusted balance |
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