With reference to Exercise: In Exercise, On June 1, Rangel Supplys Accounts Receivable balance was $ 25,325.

Question:

With reference to Exercise:
In Exercise, On June 1, Rangel Supply’s balance was $ 25,325. The balance of the contra account Allowance for Doubtful Accounts was $ 1,520 credit. On June 20, the account balance of McIntyre’s Bakery of $ 460 was written off.

a. Use the specific charge- off method of accounting for Bad Debts Expense to write off the McIntyre’s Bakery account.
b. Reinstate the McIntyre’s Bakery account and collect the amount due.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...