At the end of 2021, Novak Corp. has accounts receivable of $778,200 and an allowance for doubtful accounts of $35,700. On January 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $7,200. On March 4, 2022, Novak Corp. receives payment of $7,200 in full from Madonna Inc. Prepare the journal entries to record this 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 Madonna) Debit 7,200 7,200 Credit 7,200 7,200

At the end of 2021, Novak Corp. has accounts receivable of $778,200 and an allowance for doubtful accounts of $35,700. On January 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $7,200. On March 4, 2022, Novak Corp. receives payment of $7,200 in full from Madonna Inc. Prepare the journal entries to record this 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 Madonna) Debit 7,200 7,200 Credit 7,200 7,200

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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