At the end of 2020, Pina Colada Corp. has accounts receivable of $2.85 million and an allowance for doubtful accounts of $137,000. On January 16, 2021, Pina determined that its $18,800 receivable from Blossom Company will not be collected, and management has authorized its write off. On January 31, 2021, Pina received notification that the company will be receiving $0.10 for every $1.00 of accounts receivable relating to Sunland Company The company had previously written off 100% of the amount due from Sunland($52,500).

Prepare the journal entry for Pina Colada Corp. to write off the Blossom receivable and any journal entry necessary to reflect the notice regarding Sunland Company (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

To write off the Blossom accounts:

Account Titles and Explanation	Debit	Credit

Sunland Company reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible:

Account Titles and Explanation	Debit	Credit

eTextbook and Media

List of Accounts

What is the estimated net realizable value of Pina’s accounts receivable before and after the entries above? What is the book value of Pina’s accounts receivable before and after the entries above?

		Before Adjustments		After Adjustments
Net Realizable Value		$		$
Book Value		$		$

Answer rating: 100% (QA)

The pina company is following the allowance method for accounting for bad debts expense A On written ... View the full answer