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. Record the cash receipt from Green.

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Business

Campbell Kent

30 December, 19:45

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. Record the cash receipt from Green.

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Leticia Garrett · Answer 1

The journal entry is shown below:

On March 9

Cash A/c Dr $300

To Account receivable - Green A/c $300

(Being the cash received is recorded)

For recording the cash receipts we debited the cash account and credited the account receivable account so that the correct posting can be done

All other information which is given is not relevant. Hence, ignored it