Unformatted text preview: Because Wang Corporation has no further remedies for collection, Frank directed the accounting department to prepare a journal entry to write off the account of Timber Creek. (a) Prepare the journal entry to write off the Timber Creek account. (b) Explain why the actual write-off will not result in a reduction of Wang Corporation's income? (c) Suppose Timber Creek recovered from its bankruptcy and eventually voluntarily paid the $50,000 "owed" to Wang. Prepare Wang's journal entries to record the unexpected recovery....
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- Spring '11
- Accounting, Generally Accepted Accounting Principles, Wang Corporation