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At the end of 2021, Oriole Company has accounts receivable of $739,500 and an allowance for doubtful accounts of $23,560. 1. On January 24, 2022,
At the end of 2021, Oriole Company has accounts receivable of $739,500 and an allowance for doubtful accounts of $23,560.
1. | 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 $4,031. | |
2. | On March 4, 2022, Oriole Company receives payment of $4,031 in full from Madonna Inc. |
Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
1. | Enter an account title | Enter a debit amount | Enter a credit amount |
Enter an account title | Enter a debit amount | Enter a credit amount | |
2. | Enter an account title to record recovery of accounts receivable | Enter a debit amount | Enter a credit amount |
Enter an account title to record recovery of accounts receivable | Enter a debit amount | Enter a credit amount | |
(To record recovery of accounts receivable.) | |||
Enter an account title to record collection of accounts receivable | Enter a debit amount | Enter a credit amount | |
Enter an account title to record collection of accounts receivable | Enter a debit amount | Enter a credit amount | |
(To record collection of accounts receivable.) |
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