At the end of 2021, Tamarisk, Inc. has accounts receivable of $740,700 and an allowance for doubtful accounts of $37,700. On Janua 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $6,300. On March 4, 2022, Tamarisk, Inc. receives payment of $6,300 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. If no entry is required, select "No Entry for the account titles and enter O for the amounts) Account Titles and Explanation (To reverse write-off) (To record collection from Madonna) Debit Credit

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 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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At the end of 2021, Tamarisk, Inc. has accounts receivable of $740,700 and an allowance for doubtful accounts of $37.700. 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 $6,300. On March 4, 2022, Tamarisk, Inc. receives payment of $6,300 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Account Titles and Explanation
(To reverse write-off)
(To record collection from Madonna)
Debit
Credit
SUPPORT
Transcribed Image Text:At the end of 2021, Tamarisk, Inc. has accounts receivable of $740,700 and an allowance for doubtful accounts of $37.700. 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 $6,300. On March 4, 2022, Tamarisk, Inc. receives payment of $6,300 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation (To reverse write-off) (To record collection from Madonna) Debit Credit SUPPORT
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