Can i get help? ### Allowance Method for Uncollectibles - Journal Entries**Background:**Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off a $1,200 account of a customer, C. Green. On March 9, it receives a $700 payment from Green.**Tasks:**1. Prepare the journal entry for January 31.2. Prepare the journal entries for March 9, assuming no additional money is expected from Green.**Instructions:**The following steps outline how to record the necessary transactions in the company's accounting records.**View Transaction List**#### Transaction List:1. **Record the write-off of Green's $1,200 account** **Explanation:** It's necessary to adjust the Allowance for Doubtful Accounts and remove the Accounts Receivable for Green.2. **Record the reinstatement of Green's account, assuming no additional money is expected** **Explanation:** This step involves reversing the write-off, acknowledging that the customer partially settled their account.3. **Record the cash receipt from Green** **Explanation:** Finally, record the actual cash received from Green.### Detailed Recording Process:1. **Record the write-off of Green's $1,200 account** - **Debit**: Allowance for Doubtful Accounts $1,200 - **Credit**: Accounts Receivable - Green $1,2002. **Record the reinstatement of Green's account, assuming no additional money is expected** - **Debit**: Accounts Receivable - Green $700 - **Credit**: Allowance for Doubtful Accounts $7003. **Record the cash receipt from Green** - **Debit**: Cash $700 - **Credit**: Accounts Receivable - Green $700This structured approach will ensure the financial records are accurate and reflect the collection and write-off activities related to C. Green.

SOLUTION- UNDER THE ALLOWANCE METHOD , WHEN IT IS EXPECTED THAT DEBT WILL BE BAD ON ALLOWANCE IS…

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,200 account of a customer, Green. On March 9, it receives a $700 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green. View transaction list > Record the write-off of Green's $1,200 account 2 Record the reinstatement of Green's account, assuming no additional money is expected. 3 Record the cash receipt from Green. Credit

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,200 account of a customer, Green. On March 9, it receives a $700 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green. View transaction list > Record the write-off of Green's $1,200 account 2 Record the reinstatement of Green's account, assuming no additional money is expected. 3 Record the cash receipt from Green. 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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