Beer Company uses the allowance method to account for uncollectible accounts. On January 1, the allowance for
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Question:
Beer Company uses the allowance method to account for uncollectible accounts. On January 1, the allowance for doubtful accounts had a credit balance of $2,000. The balance in the accounts receivable account on that date was $57,000. On January 2, prior to any credit sales, a $300 account from Goggles Company was deemed to be uncollectible and written off. On March 15, the $300 payment was received from Goggles.
Required:
A. | Compute the net realizable value of Beer's receivables on January 1. |
B. | Present the journal entry Beer would record on January 2 related to the write-off of Goggle's account. |
C. | Compute the net realizable value of Beer's receivables on January 2, immediately following the write-off of Goggles account. |
D. | Present the journal entries Beer would record on March 15 when Goggle’s payment was received. |
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