Theta Company determines that a $6,300 account receivable from CorpCo is uncollectible and writes off the account using the direct write-off method on June 16. On August 21, CorpCo pays the $6,300 to Theta Company.Journalize the entry for the reinstatement of the account receivable and receipt of cash on August 21. You may omit posting references. If an amount box does not require an entry, leave it blank.Aug. 21Aug. 21

Solution: Under direct write method, Account is written off directly to income statement.

Theta Company determines that a $6,300 account receivable from CorpCo is uncollectible and writes off the account using the direct write-off method on June 16. On August 21, CorpCo pays the $6,300 to Theta Com Journalize the entry for the reinstatement of the account receivable and receipt of cash on August 21. You may omit posting references. If an amount box does not require an entry, leave it blank. Aug. 21

Theta Company determines that a $6,300 account receivable from CorpCo is uncollectible and writes off the account using the direct write-off method on June 16. On August 21, CorpCo pays the $6,300 to Theta Com Journalize the entry for the reinstatement of the account receivable and receipt of cash on August 21. You may omit posting references. If an amount box does not require an entry, leave it blank. Aug. 21

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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