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Accounts receivable transactions are provided below for J Sheridan Co. Dec. 31, 2020 The company estimated...

Accounts receivable transactions are provided below for J Sheridan Co. Dec. 31, 2020 The company estimated that 5% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $668,000 and $2,500 (debit), respectively. Mar. 5, 2021 The company determined that R. Mirza’s $3,200 account and D. Wight’s $6,200 account were uncollectible. The company’s accounts receivable were $707,400 before the accounts were written off. June 6, 2021 Wight paid the amount that had been written off on March 5. The company’s accounts receivable were $658,600 prior to recording the cash receipt for Wight. Prepare the journal entries on December 31, 2020, March 5, 2021, and June 6, 2021.

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Answer #1
Journal entries:
S.no. Accounts title and explanations Debit $ Credit $
31.12.20 Bad debts expense 35900
    Allowance for doubtful accounts 35900
(for bad debts expense recognized)
(668000*5% +2500)
05.03.21 Allowance for Doubtful accounts 9,400
     Accounts recievable (3200+6200) 9400
(for amount written off)
06.06.21 Accounts receivable 6200
   Allowance fro Doubtful accounts 6200
(for amount reinstated)
06.06.21 Cash 6200
    Accounts recievable 6200
(for cash received)
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