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Instructions

Chart of Accounts

Instructions

McKinney & Co$.$ estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $$2,400,000$ in $2019.$ McKinney estimates $2\mathrm{.}5\%$ of its sales will be uncollectible At the end of the first quarter of $2020,$ McKinney & Co$.$ reevaluates its receivables. McKinney's management decides that $$7,300$ due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account.

On April $23,2020,$ McKinney & Co$.$ receives a check from Mangold Corporation for $$7,300.$

Required:

Prepare the joumal entries for McKinney to record the collection of the account previously written off.