Q4SE Collecting a receivable previous... [FREE SOLUTION]

Chapter 8: Q4SE (page 466)

Collecting a receivable previously written off鈥攄irect write-off method
Spring Garden Greenhouse had trouble collecting its account receivable from Steve Stone. On June 19, 2018, Spring Garden Greenhouse finally wrote off Stone鈥檚 $600 account receivable. On December 31, Stone sent a $600 check to Spring Garden Greenhouse.
Journalize the entries required for Spring Garden Greenhouse, assuming Spring Garden Greenhouse uses the direct write-off method.

Short Answer

Expert verified

Step by step solution

Collection of written off Receivable

When the company has received the previously written off receivable then the same has to Reinstate the previously written off amount and the collection entry will be posted.

Step 2: Journalize the transactions for Spring Garden Greenhouse

Date	Account and explanation	Debit	Credit
June 19, 2018	Bad Debts Accounts receivable 鈥� Steve stone (Wrote off an uncollectible account)	$ 600	$ 600
Dec 13, 2018	Accounts receivable 鈥� Steve stone Bad Debts Expense Reinstated previously written off account.	$ 600	$ 600
Dec 13, 2018	Cash Accounts receivable 鈥� Steve stone Collected cash on account	$ 600	$ 600

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Recommended explanations on Business Studies Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

	Principal	Interest	Interest Period During 2018
Note 1	\( 30,000	6%	6 months
Note 2	\) 12,000	10%	270 days
Note 3	\( 14,000	14%	75 days
Note 4	\) 100,000	7%	10 months

91影视

Short Answer

Step by step solution

Collection of written off Receivable

Step 2: Journalize the transactions for Spring Garden Greenhouse

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Sales in Business

Organizational Communication

Business Case Studies

Intermediate Accounting

Managers

Influences On Business

Study anywhere. Anytime. Across all devices.