Refer to RE6-8. On April 23, 2020, McKinney & 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.

Refer RE6-8

Refer to RE6-7. At the end of the first quarter of 2020, 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. 

Refer RE6-7

McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible.