Brief Exercise 8-4

At the end of 2016, Sunland Company has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200.

1.		On January 24, 2017, it is learned that the companys receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,245.
2.		On March 4, 2017, Sunland Company receives payment of $4,245 in full from Madonna Inc.

Prepare the journal entries to record this transaction.

No.	Account Titles and Explanation	Debit	Credit
1.
2.
	(To record recovery of accounts receivable.)
	(To record collection of accounts receivable.)