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Journal Entries relating to receivables

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Adjusting entry for bade debt expense
Entry for write off of Flake co.
Enrty for reinstatement of Flake Co. account and collection and write off


Solution Preview

1. The doubtful accounts are $20,000. The balance in the allowance for doubtful accounts is a debit of $600. The allowance for doubtful accounts should notmally have a credit balance and the amount should be $20,000. The entry to be passed would ...

Solution Summary

The solution explains the journal entries for adjusting the balance in the allowance account, write-off and subsequent collection of accounts receivable