At the end of 2022, Sunland Co. has accounts receivable of $713,600 and an allowance for doubtful accounts of $56,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7,500. On March 4, 2023, Sunland Co. receives payment of $7,500 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 (To reverse write-off) Debit Credit

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
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At the end of 2022, Sunland Co. has accounts receivable of $713,600 and an allowance for doubtful accounts of $56,000. On January
24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7,500.
On March 4, 2023, Sunland Co. receives payment of $7,500 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
(To reverse write-off)
(To record collection from Gray)
Debit
Credit
NO
Transcribed Image Text:At the end of 2022, Sunland Co. has accounts receivable of $713,600 and an allowance for doubtful accounts of $56,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7,500. On March 4, 2023, Sunland Co. receives payment of $7,500 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 (To reverse write-off) (To record collection from Gray) Debit Credit NO
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