Winston Incorporated uses the allowance method for accounts receivable uncollect

Question

Winston Incorporated uses the allowance method for accounts receivable uncollectible accounts. Shoppers Discount Company has closed its business, left no forwarding address, and has not made any payments on account for over two years. Present the journal entry, in proper form, to write off the remaining accounts receivable of $24,000. Misty Green Designers uses the allowance method for uncollectible accounts. A former customer, EA All Sports, is seeking to return to good standing and begin doing business with the company again. As part of the agreement, on March 31, 2016, EA All Sports paid Misty Green Designers the $54,600 balance due (Misty Green Designers wrote this value off four years ago). Present the required journal entry or entries to record this transaction. As a new business manager you are concerned that the bank reconciliation is not being completed and presented to you on a timely basis. Explain why the bank reconciliation is important, who should complete the actual report, and actions that should occur upon receiving the report.

Explanation / Answer

Q5. Journal Entry

Q6. Journal Entry:

Q7. Bank reconciliation statement is important to find and sort out any differences between the balance of bank as per bank statement and balance as per cash book. Without the reconciliation balance of cash will not show the actual balance of the account. Accountant of the company is responsible to tally bank statement with cash book.

Date Account Title Debit Credit xxx Allowance for Bad debts 24,000 Account Receivable - Shoppers Discount Company 24,000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.