Question

On December 31, 2017, Extreme Fitness has adjusted balances of $820,000 in Accounts Receivable and $59,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $12,000.

Assume that on February 2, 2018, Extreme Fitness received a payment of $700 from one of the customers whose balance had been written off. Prepare the journal entries to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
	Allowance for Doutfull Debts	$                  12,000
January 02, 2018	Account Receivable		$                     12,000
	( Record the write off the customer account)
February 02, 2018	Account Receivable	$                        700
	Allowance for Doutfull Debts		$                           700
	(Create the account receivable again for recover)
February 02, 2018	Cash	$                        700
	Account Receivable		$                           700
	(Collect the cash from customer)