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Ruth Company uses the allowance method for estimating uncollectible accounts. Jan. 5 Apr. 15 Aug. 21 Sold merchandise to Amy Fergenbaum for $2.900, terms n/15.

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Ruth Company uses the allowance method for estimating uncollectible accounts. Jan. 5 Apr. 15 Aug. 21 Sold merchandise to Amy Fergenbaum for $2.900, terms n/15. Received $580 from Amy Fergenbaum on account. Wrote off as uncollectible the balance of the Amy Fergenbaum account when she declared bankruptcy. Unexpectedly received a cheque for $725 from Andy Fergenbaum. Ruth does not expect to receive any more payments from Fergenbaum. Oct. 5 Prepare journal entries to record the following transactions. Ignore any cost of goods sold entry in the sales transactions (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Date Account Titles and Explanation Debit Credit (To reverse write off of Amy Fergenbaum account.) (To record collection from Amy Fergenbaum.)

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