Shelton Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions:
January 5 Sold merchandise to Luke Ryan for $1700 terms n/15.
April 15 Received $500 from Luke Ryan on account.
August 21 Wrote off as uncollectible the balance of the Luke Ryan account when he declared bankruptcy.
October 5 Unexpectedly received a check for $600 from Luke Ryan. It is not felt any more will be received from Ryan

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The Answer of Shelton Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions:
January 5 Sold merchandise to Luke Ryan for $1700 terms n/15.
April 15 Received $500 from Luke Ryan on account.
August 21 Wrote off as uncollectible the balance of the Luke Ryan account when he declared bankruptcy.
October 5 Unexpectedly received a check for $600 from Luke Ryan. It is not felt any more will be received from Ryan

Shelton Company Uses the Allowance Method for Estimating Uncollectible Accounts