Accounts Receivable and Uncollectible accounts?

Question

Milner Corp. uses the allowance method to account for uncollectibles. On October 31, it wrote off

a $1,000 account of a customer, C. Schaub. On December 9, it receives a $200 payment from Schaub.

1. Prepare the journal entry or entries for October 31.

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

Schaub.

what would the journal look like

Answer 1

October 31

Debit 'Allowance for Doubtful Accounts' $1,000

Credit 'Accounts Receivable - C. Schaub' $1,000

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December 9

Debit 'Accounts Receivable - C. Schaub' $200

Credit ''Allowance for Doubtful Accounts' $200

[ This entry reinstates a portion of the original receivable. ]

Debit 'Cash' $200

Credit ''Accounts Receivable - C. Schaub' $200

[ This entry records the payment received. ]