At the end of 2016, Sunland Company has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200.1.On January 24, 2017, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,245.
2.On March 4, 2017, Sunland Company receives payment of $4,245 in full from Madonna Inc.
Prepare the journal entries to record this transaction.
