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Financial & Managerial Accounting
Found in: Page 343
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $800 account of a customer, C. Green. On March 9, it receives a $300 payment from Green.

2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.

Additional money or additional capital is the type of amount invested by the owner or the partner of an organization to meet the shortage of cash and cash equivalents in the organization.

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Step by Step Solution

Introduction

The journal entry to record the transaction of C. Green as per the allowance method will include the below two entries.

Journal entry

Date

Particulars

Debit

Credit

March 9

Accounts receivables

$300

Allowance for doubtful accounts

$300

(To record the accounts receivables)

March 9

Cash

$300

Accounts receivables

$300

(To record the cash received)

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