At the end of 2020, Monty Corp. has accounts receivable of $2.95 million and an allowance for doubtful accounts of $132,000. On January 16, 2021, Monty determined that its $24,400 receivable from Sandhill Co. will not be collected, and management has authorized its write off. On January 31, 2021, Monty received notification that the company will be receiving $0.20 for every $1.00 of accounts receivable relating to Carla Vista Co. The company had previously written off 100% of the amount due from Carla Vista ($56,000). (a) Prepare the journal entry for Monty Corp. to write off the Sandhill receivable and any journal entry necessary to reflect the notice regarding Carla Vista Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) To write off the Sandhill accounts: Account Titles and Explanation Debit Account Titles and Explanation Carla Vista Co. reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible: Credit Debit Credit

At the end of 2020, Monty Corp. has accounts receivable of $2.95 million and an allowance for doubtful accounts of $132,000. On January 16, 2021, Monty determined that its $24,400 receivable from Sandhill Co. will not be collected, and management has authorized its write off. On January 31, 2021, Monty received notification that the company will be receiving $0.20 for every $1.00 of accounts receivable relating to Carla Vista Co. The company had previously written off 100% of the amount due from Carla Vista ($56,000). (a) Prepare the journal entry for Monty Corp. to write off the Sandhill receivable and any journal entry necessary to reflect the notice regarding Carla Vista Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) To write off the Sandhill accounts: Account Titles and Explanation Debit Account Titles and Explanation Carla Vista Co. reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible: Credit Debit Credit

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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