Question

On March 13, a company writes off a customer's account of $3,100. On June 3, the customer unexpectedly pays the $3,100 balance.

Using the allowance method, record the write-off on March 13 and the cash collection on June 3. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Solution

Date	General Journal	Debit	Credit
Mar-13	Allowance for doubtful accounts	$       3,100.00
	Accounts receivable		$ 3,100.00
	(To finally write of receivables)
Jun-03	Accounts receivable	$       3,100.00
	Allowance for doubtful accounts		$ 3,100.00
	(To reinstate receivables)
Jun-03	Cash	$       3,100.00
	Accounts receivable		$ 3,100.00
	(to record collection from receivable)

Firs accounts receivable will be increased then only collection entry will be made.