Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,800 account of a customer, C. Green. On March 9, it receives a $2,300 payment from Green. Prepare the journal entry for January 31 and March 9. Assume no additional money is expected from Green for March 9. g

journal entry are given below

Explanation:

given data

account of a customer = $2,800

receives payment = $2,300

solution

we get here journal entry that is on

and for the cash receipt we will debit cash account and credit account receivable accounts

On January 31

Allowance for doubtful accounts A/c = $2800 Dr

To Account receivable A/c = $800

Being the written off amount is recorded

On January 31

Account receivable A/c = $2300 Dr

To Allowance for doubtful accounts A/c = $2300

Being the reverse entry is made

On March 9

Cash A/c = $2300 Dr

To Accounts receivable A/c = $2300

Being the amount is collected

The Journal entry is shown below:-

On Jan 31

Allowance for doubtful accounts $2,800

To Accounts receivable - C. Green $2,800

(Being the uncollectible amount is recorded)

Mar 09

Accounts receivable - C. Green $2,300

To Allowance for doubtful accounts $2,300

(Being the written off amount is recorded

Mar 09

Cash $2,300

To Accounts receivable - C. Green $2,300

(Being the payment is received is recorded)