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Accounts Receivable Journal Entries-Writeoff and Recovery

Rupert Manufacturing Co. sold $20,000 of merchandise to Mr. J. Hart on May 14, 2007, on account. The company attempted collection efforts starting in October of the same year. Hart filed for bankruptcy on November 18, and the company wrote off his account receivable at that time. On December 29, 2007, Rupert Manufacturing received a check for $6,000 in settlement of the debt of Mr. Hart, who stated that he could pay no more.

Prepare all of the journal entries for Rupert Manufacturing in regard to the account of Mr. J. Hart during 2007.

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Please, only answer if you understand this problem well enough to do so using GAAP and other accepted accounting norms where applicable. Please show work.

Solution Preview

May 17, 2007 Accounts Receivable $20,000
Sales Revenues $20,000
To record the sale of merchandise on account to Mr. J. Hart.

November 18, 2007 ...

Solution Summary

Rupert Manufacturing Co. sold $20,000 of merchandise to Mr. J. Hart on May 14, 2007, on account. The company attempted collection efforts starting in October of the same year. Hart filed for bankruptcy on November 18, and the company wrote off his account receivable at that time. On December 29, 2007, Rupert Manufacturing received a check for $6,000 in settlement of the debt of Mr. Hart, who stated that he could pay no more.

Prepare all of the journal entries for Rupert Manufacturing in regard to the account of Mr. J. Hart during 2007.

$2.19