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Unformatted text preview: $10,000 in accounts receivables from Pendant Publishing. It decided to write-off this account. Jun. 15 Allowance 10000 A/R 10000 Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity HANDOUT 8 – 1, CONTINUED (5) On July 15, Pendant Publishing called to say that they have had financial problems but can afford to pay $7,000 to settle their $10,000 debt in full. Vandolay Industries agreed to these terms, and reversed $7,000 of the prior write-off. It received a $7,000 check from Pendant the next day. Jul. 16 A/r 7000 Allowance 7000 Jul. 16 Cash 7000 A/R 7000 Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity Post the above entries to the following T-accounts : + Accounts Receivable (A) –- Allowance for Doubtful Accounts (xA) +...
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