On March 10, Barrett, Inc., declared a $17,000 account receivable from the Lamas Company as uncollectible and wrote off the account. On November 18, Barrett received an $11,000 payment on the account from Lamas.

A. Assume that Barrett uses the allowance method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Lamas's account

B. Assume that Barrett uses the direct write-off method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Lamas's account.

C. Assume that the payment from Lamas arrives on February 5 of the following year rather than on November 18 of the current year. (1) Prepare the journal entries to record the write-off and subsequent recovery of Lamas's account under the allowance method. (2) Prepare the journal entries to record the write-off and subsequent recovery of Lamas's account under the direct write-off method.

Answer rating: 100% (QA)

A Allowance Method 1 Writeoff of Lamass account March 10 Dr Allowance for Doubtful Accounts 17000 Cr ... View the full answer