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Your answer is partially correct. At the end of 2021, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts
Your answer is partially correct. At the end of 2021, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,140. 1. On January 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,210. On March 4, 2022, Nash's Trading Post, LLC receives payment of $4,210 in full from Madonna Inc. 2. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation 1. Allowance for Doubtful Accounts 4210 Accounts Receivable 4210 2. Cash 612460 612460 Accounts Receivable (To record recovery of accounts receivable.) Accounts Receivable 612460 612460 Allowance for Doubtful Accounts (To record collection of accounts receivable.)
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