b) Tommy MacDonald Company experienced the following transactions during an accounting period: a) Began the accounting period with a normal balance in its allowance account of $780,000. b) Wrote-off a receivable from Tom Matney Company in the amount $2,000. c) Wrote-off a receivable from Anthony Palmer Company in the amount of $212,000. d) Wrote-off a receivable from Renaud Pelletier Company in the amount of $76,000. e) Experienced a write-off recovery from Thomasin Pitts Company in the amount of $7,500. I f) Calculated the required balance in the allowance account to be $623,000 at the end of the period. Complete the following "T" account for the account activity described above in the allowance for doubtful accounts account. ALLOW FOR DOUBTFUL ACCTS DR CR

b) Tommy MacDonald Company experienced the following transactions during an accounting period: a) Began the accounting period with a normal balance in its allowance account of $780,000. b) Wrote-off a receivable from Tom Matney Company in the amount $2,000. c) Wrote-off a receivable from Anthony Palmer Company in the amount of $212,000. d) Wrote-off a receivable from Renaud Pelletier Company in the amount of $76,000. e) Experienced a write-off recovery from Thomasin Pitts Company in the amount of $7,500. I f) Calculated the required balance in the allowance account to be $623,000 at the end of the period. Complete the following "T" account for the account activity described above in the allowance for doubtful accounts account. ALLOW FOR DOUBTFUL ACCTS DR CR

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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