Refer to RE6-6. On April 23, 2017, McKinney 8c Co. receives a check from Mangold Corporation for $8,500. Prepare the journal entry for McKinney to record the collection of the account previously written off.
At the end of the first quarter of 2017, McKinney & Co. reevaluates its receivables. McKinney’s management decides that $8,500 due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account. Prepare the journal entry to record the write-off for McKinney.