Recording and Reporting Accounts Receivable Transactions and Write-Offs

Provided below is a chronological log of a sale on credit by Lumber Inc. to Anton. Dec. 24, 2016Sold merchandise to Anton, $2,000, terms 2/10, n/30. Jan. 2, 2017Anton paid half of the receivable and took the discount. Dec. 31, 2019Anton has failed to pay the receivable and Lumber Inc. wrote Antons account off as uncollectible. Dec. 31, 2021Anton unexpectedly paid its debt to Lumber Inc. in full, including 6% annual interest (not compounded, compute to the nearest month).

a. Prepare the entry(ies) that Lumber Inc. should make at each of the above dates (ignore any cost of goods sold entries). Record sales using the net method.

• Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name.

b. Indicate how Anton's account receivable should be reported by Lumber Inc. at each December 31, its annual year-end.

Dr. Cr. 2,000 x 0 O 2,000 x 1,000 X 0 1,000 x 0 x O 1,000 x 1,120 x 0