Question

At the end of 2021, Skysong, Inc. has accounts receivable of $768,300 and an allowance for doubtful accounts of $26,300. 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 $4,480. 2. On March 4, 2022, Skysong, Inc. receives payment of $4,480 in full from Madonna Inc. Prepare the journal entries to record this transaction

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

No.	Account Title and Explanation	Debit ($)	Credit($)
1.	Allowance for Doubtful Accounts	4,480
	Accounts Receivable		4,480
	(To record Uncollectible accounts written off)
2.	Accounts Receivable	4,480
	Allowance for Doubtful Accounts		4,480
	(To record recovery of accounts receivable)
3.	Cash	4,480
	Accounts Receivable		4,480
	(To record collection of accounts receivable)