Question

At the end of 2021, Oriole Company has accounts receivable of $739,500 and an allowance for doubtful accounts of $23,560.

1.		On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,031.
2.		On March 4, 2022, Oriole Company receives payment of $4,031 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	Debit	Credit
1.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
2.	Enter an account title to record recovery of accounts receivable	Enter a debit amount	Enter a credit amount
	Enter an account title to record recovery of accounts receivable	Enter a debit amount	Enter a credit amount
	(To record recovery of accounts receivable.)
	Enter an account title to record collection of accounts receivable	Enter a debit amount	Enter a credit amount
	Enter an account title to record collection of accounts receivable	Enter a debit amount	Enter a credit amount
	(To record collection of accounts receivable.)

Answer 1

Answer
S.No.	Accounts titles and Explanation	Debit ($)	Credit ($)
1	Allowance for doubtful accounts	$     4,031
	Account receivable-Madonna Inc.		$           4,031
	(To record amount write off)
2	Account receivable-Madonna Inc.	$     4,031
	Allowance for doubtful accounts		$           4,031
	(To record recovery of accounts receivable)
	Cash	$     4,031
	Account receivable-Madonna Inc.		$           4,031
	(To record collection of accounts receivable)
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