At the end of 2022, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. On March 4, 2023, Carpenter Co. receives payment of $6,200 in full from Megan Gray. Prepare the journal entries to record the March 4, 2023, transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts 6.200 Accounts Receivable (To reverse write-off) 6.200
At the end of 2022, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. On March 4, 2023, Carpenter Co. receives payment of $6,200 in full from Megan Gray. Prepare the journal entries to record the March 4, 2023, transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts 6.200 Accounts Receivable (To reverse write-off) 6.200
Chapter1: Financial Statements And Business Decisions
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![# Journal Entries for Accounts Receivable Collection
**Scenario:**
At the end of 2022, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. On March 4, 2023, Carpenter Co. receives payment of $6,200 in full from Megan Gray.
**Task:**
Prepare the journal entries to record the March 4, 2023, transaction.
---
## Journal Entries
### To Reverse Write-Off
| **Account Titles and Explanation** | **Debit** | **Credit** |
|:---------------------------------------------|:----------|:--------------|
| Allowance for Doubtful Accounts | 6,200 | |
| Accounts Receivable | | 6,200 |
| *(To reverse write-off)* | | |
### To Record Collection
| **Account Titles and Explanation** | **Debit** | **Credit** |
|:---------------------------------------------|:----------|:------------|
| Cash | [Enter amount] | |
| Accounts Receivable | | [Enter amount] |
| *(To record collection from Gray)* | | |
---
**Additional Information:**
- **Allowance for Doubtful Accounts**: This account is used to record the estimated amount of accounts receivable that is expected to be uncollectible.
- **Accounts Receivable**: This account represents the amount owed to the company by its customers.
- **Cash**: On receiving the payment, this account will be debited to show the increase in cash reserves.
**Instructions:**
- Credit account titles are automatically indented when the amount is entered.
- Do not indent manually.
**Attempts**: 0 of 3 used
[Save for Later] [Submit Answer]
---
**Note:**
- Ensure that you replace "[Enter amount]" with the actual transaction amount ($6,200 in this case).
By correctly recording these journal entries, students will understand the process of reversing a write-off and recognizing the collection of previously written-off receivables. This contributes to accurate financial reporting and up-to-date accounting records.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F956ceb24-c6a8-4218-a305-e38938129f02%2F87ae8fb7-3199-45de-9554-796d7da910f8%2F3lisaig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:# Journal Entries for Accounts Receivable Collection
**Scenario:**
At the end of 2022, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. On March 4, 2023, Carpenter Co. receives payment of $6,200 in full from Megan Gray.
**Task:**
Prepare the journal entries to record the March 4, 2023, transaction.
---
## Journal Entries
### To Reverse Write-Off
| **Account Titles and Explanation** | **Debit** | **Credit** |
|:---------------------------------------------|:----------|:--------------|
| Allowance for Doubtful Accounts | 6,200 | |
| Accounts Receivable | | 6,200 |
| *(To reverse write-off)* | | |
### To Record Collection
| **Account Titles and Explanation** | **Debit** | **Credit** |
|:---------------------------------------------|:----------|:------------|
| Cash | [Enter amount] | |
| Accounts Receivable | | [Enter amount] |
| *(To record collection from Gray)* | | |
---
**Additional Information:**
- **Allowance for Doubtful Accounts**: This account is used to record the estimated amount of accounts receivable that is expected to be uncollectible.
- **Accounts Receivable**: This account represents the amount owed to the company by its customers.
- **Cash**: On receiving the payment, this account will be debited to show the increase in cash reserves.
**Instructions:**
- Credit account titles are automatically indented when the amount is entered.
- Do not indent manually.
**Attempts**: 0 of 3 used
[Save for Later] [Submit Answer]
---
**Note:**
- Ensure that you replace "[Enter amount]" with the actual transaction amount ($6,200 in this case).
By correctly recording these journal entries, students will understand the process of reversing a write-off and recognizing the collection of previously written-off receivables. This contributes to accurate financial reporting and up-to-date accounting records.
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