On March 7, 2020 Homer Company determined that I.M. Broke's $3,700 account receivable was uncollectible....
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On March 7, 2020 Homer Company determined that I.M. Broke's $3,700 account receivable was uncollectible. On December 4, 2020, the $3,700 cash was unexpectedly received on account from I. M. Broke REQUIRED: A. Give the general journal entries required to record the March 7 and December 4 transactions for Homer Company, assuming the direct method of accounting for bad debts is used. B. Give the general journal entries required to record the March 7 and December 4 transactions for Homer Company, assuming the allowance method of accounting for bad debts is used. C. Under the allowance method, if the cash realizable value of Homer Company's accounts receivable was $69,000 prior to the March 7 write-off entry, what is the cash realizable value of the accounts receivable after the March 7 write-off entry? GENERAL JOURNAL Account Titles DR CR Part A-Direct Write-Off Method Date Part B--Allowance Method
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