On December 31, 2020, Extreme Fitness has adjusted balances of $820,000 in Accounts Receivable and $59,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $12,000. Required: Assume that on February 2, 2021, Extreme Fitness received a payment of $700 from one of the customers whose balance had beer written off. Prepare the journal entries to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet 1 2 Record the reversal of a customer account previously written off in the amount i of $700. Note: Enter debits before credits. Transaction 1 General Journal Accounts Receivable Allowance for Doubtful Accounts Debit Credit
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![On December 31, 2020, Extreme Fitness has adjusted balances of $820,000 in Accounts Receivable and $59,000 in Allowance for
Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management
authorizes a write-off of these accounts totaling $12,000.
Required:
Assume that on February 2, 2021, Extreme Fitness received a payment of $700 from one of the customers whose balance had been
written off. Prepare the journal entries to record this transaction. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
2
Record the reversal of a customer account previously written off in the amount
of $700.
Note: Enter debits before credits.
Transaction
1
General Journal
Accounts Receivable
Allowance for Doubtful Accounts
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50a4e29c-d143-4c76-900b-26f418773970%2F736c3fc1-e01f-4470-bf95-0da7a41adb64%2Flvt5esp_processed.jpeg&w=3840&q=75)
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