At the end of 2016, Skysong, Inc. has accounts receivable of $768,300 and an allowance for doubtful accounts of $26,300.1. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,480.2. On March 4, 2017, Skysong, Inc. receives payment of $4,480 in full from Madonna Inc.Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)No. Account Titles and ExplanationDebitCredit1.2.(To record recovery of accounts receivable.)(To record collection of accounts receivable.)

Accounts receivable: Accounts receivable are money owed to business from debtors. These are payments…

Answered: At the end of 2016, Skysong, Inc. has…

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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On January 1, 2018, Keiasia Company’s Accounts Receivable and the Allowance for Uncollectible Accounts showed balances of $24,000 and $1,200 respectively. During the year, the company reported $64,000 of credit sales, and cash collections of receivables amounted to $58,000. During the year, the company wrote of $1,400 of delinquent accounts. The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance. The amount of bad debts expense recognized in the 2018 income statement will be: A. $1,230 B. $1,630 C. $230 D. $500 Answer is B, how do you get to 1,630
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Sah
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From inception of operations to December 31, 2015, Harris Corporation provided for uncollectible accounts receivable under the allowance method. Provisions were made monthly at 2% of credit sales; bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account; and no year-end adjustments to the allowance account were made. Harris’s usual credit terms are net 30 days. The balance in the Allowance for Doubtful Accounts was $130,000 at January 1, 2016. During 2016, credit sales totaled $9,000,000, interim provisions for doubtful accounts were made at 2% of credit sales, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Harris upgraded its computer facility in November 2016, and an aging of accounts receivable was prepared for the first time as of December 31, 2016. A summary of the aging is as follows: Classification by Balance in Each…
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