46
Chapter 2
Accounting for Receivables
b) Assuming that Tyrone Huntzinger’s situation changed and he paid you in full on
August 20, 2016. Prepare the journal entries to record this transaction.
Date
Account Title and Explanation
Debit
Credit
AP-8A (
2
)
A customer’s account in the amount of $2,000 was previously written off. Amazingly, on
December 31, 2016, you receive a check in the mail from the customer with a letter of apology
for not paying sooner (the account is two years old). Prepare the journal entries by using the
allowance method.
Date
Account Title and Explanation
Debit
Credit
