Question

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.

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

Short answer

Additional money or additional capital is the type of amount invested by the owner or the partner of an organization to meet the shortage of cash and cash equivalents in the organization.

Step-by-step solution

Introduction

The journal entry to record the transaction of C. Green as per the allowance method will include the below two entries.

Journal entry

Date	Particulars	Debit	Credit
March 9	Accounts receivables	$300
	Allowance for doubtful accounts		$300
	(To record the accounts receivables)
March 9	Cash	$300
	Accounts receivables		$300
	(To record the cash received)