M8-4 Recording Recoverles Using the Allowance Method [LO 8-2] M8-4 Recording Rec
ID: 2550140 • Letter: M
Question
M8-4 Recording Recoverles Using the Allowance Method [LO 8-2] M8-4 Recording Recoveries Using the Allowance Method [LO 8-2] On Decamber 31, 2014, Extreme Fitness has adjusted balances of S980,000 in Accounts Receivable and accounts are not colloctible, so managcment authorizcs a writc-off of thesc accounts totaling $29,000 On Decermber 31,2014, Extreme Fitness has adjusted balances of $990,000in Arcounts Receivable and S93,000 in Allowance for Doubtful Accounts. On January 2, 2015, the company learns that certain customer accounts are not collectble, so management authorizes a wnte off of these accounts totaling $29,000. Assume that on February 2, 2015, Extreme Fitness received a payment of 2400 from one of the customers whose balance had been written off. Prepare the journal entnes to record this transacton. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Assume tn Fexuay 2, 2015, Extreme Filness received a payment of $2,400 frm one of Ihe customcrs whosc balancc had bocn written off. Prcpare the journal cntrics to rccord this transaction (If no entry is required for a transactlon event, select "No Journal Entry Required" in the first account field.) View transaction list Part A View transaction list Part B Journal entry worksheet Journal entry worksheet Record the reversal of customer account previously written off in the amount of $2,100. Record the receipt of cash of $2,400 from the customer. Note: Eriter debits before credits Note: Enter debits hefore credts Credit General Jourmal Debit Credit Record entry Clear entry View general journal Record entry Clear entry hew general journmalExplanation / Answer
Answer
Date Particulars Dr Cr 1. Account Receivable Allownce for Doubtful Debts $2400 (Being Record the reversal of a customer account previously written off in the amount of $2400.) $2400 2. Cash $2400 Bad debt recovered $2400 (cash recived from debtor)Related Questions
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