Question: Southcenter Variety Store has many accounts receivable The Southcenter balance

Southcenter Variety Store has many accounts receivable. The Southcenter balance sheet, December 31, 20X1 showed Accounts Receivable, $950,000, and Allowance for Uncollectible Accounts, $40,000. In early 20X2, write-offs of customer accounts of $31,000 were made. In late 20X2, a customer, whose $10,000 debt had been written off earlier, won a $1 million sweep-stakes cash prize. The buyer immediately remitted $10,000 to Southcenter. The store welcomed the purchaser’s money and return to high credit standing.
Prepare the journal entries for the $31,000 write-off in early 20X2 and the $10,000 receipt in late 20X2.

View Solution:

Sale on SolutionInn
  • CreatedFebruary 20, 2015
  • Files Included
Post your question