On January 1, Wolfie's Supply Sold $222 Worth of Goods

question 140

Essay

On January 1, Wolfie's Supply sold $222 worth of goods to customer Abe Smith on account. For several months, Wolfie's tried unsuccessfully to collect from the customer, and finally decided to write off the account. (Wolfie's uses the allowance method.)
Later in the year, however, the customer came in to Wolfie's, apologized for the late payment and handed over a check for $222. To properly record the recovery of an account previously written off, two journal entries are needed-one to restore the receivable previously written off, and one to record the cash receipt. Please show the first of these two entries.

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Definitions:

Biopsychosocial Model

An interdisciplinary model that looks at the interconnection between biology, psychology, and socio-environmental factors in understanding health and illness.

Etiology

The study of the causes or origins of diseases or abnormal conditions, focusing on determining how and why they occur.

Abnormal Behavior

Patterns of emotion, thought, and action deemed pathological for one or more reasons, including discomfort, disability, or violation of societal norms.

Group Therapy

A form of psychotherapy in which a small number of people with similar issues or conditions are treated together as a group.