Question 9.3: A retailer uses the allowance method. Record the following t...

Fundamental Accounting Principles

A retailer uses the allowance method. Record the following transactions.

Dec. 31 The retailer estimates $3,000 of its accounts receivable are uncollectible at its year-end.
Feb. 14 The retailer determines that it cannot collect $400 of its accounts receivable from a customer named ZZZ Company.
Apr. 1 ZZZ Company unexpectedly pays its account in full to the retailer, which then records its recovery of this bad debt.

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