Brown Co made a credit sale to Cody Co for $200,000 on July 19x9. It is known that at the end of 19x9 there was an outstanding receivable of $50,000. Management estimates that $25,000 will be uncollectible. In July 19x9 the collections department stated that a receivable of $5,000 was written off from bookkeeping because it is impossible to receive payment from Cody Co. Unexpectedly month October 19x9 Cody Co pays its outstanding debt. Requested: Prepare the adjusting entries and the journals needed to record the above transactions properly the backup method as well as the direct deletion method!

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Brown Co made a credit sale to Cody Co for $200,000 on July 19x9. It is known that at the end of 19x9 there was an outstanding receivable of $50,000. Management
estimates that $25,000 will be uncollectible.
In July 19x9 the collections department stated that a receivable of $5,000 was written off from
bookkeeping because it is impossible to receive payment from Cody Co. Unexpectedly month
October 19x9 Cody Co pays its outstanding debt.

Requested:
Prepare the adjusting entries and the journals needed to record the above transactions properly
the backup method as well as the direct deletion method!

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