Question 1 At the end of 2016 Splish Brothers Inc has accoun

Question 1 At the end of 2016, Splish Brothers Inc. has accounts receivable of $675,100 and an allowance for doubtful accounts of $24,370 1. On January 24, 2017, it is learned that the company\'s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,127. 2. On March 4, 2017, Splish Brothers Inc. receives payment of $4,127 in full from Madonna Inc Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Debit Credit 2. (To record recovery of accounts receivable.) To record collection of accounts receivable.)

Solution

Journal entry :

No	Account titles and explanation	debit	credit
1	Allowance for doubtful accounts	4127
	Account receivable		4127
	(To record amount write off)
2	Account receivable	4127
	Allowance for doubtful accounts		4127
	(To record recovery of account receivable)
	Cash	4127
	Account receivable		4127
	(To record collection of accounts receivable)