The journal entries to record the transactions will be:
Debit Account receivable $2,500,000
Credit Sales Revenue $2,500,000.
Debit Sales return and allowances $50000
Credit Accounts receivable $50000
Debit Cash $2,200,000
Credit Accounts receivable $2,200,000
Debit Allowance for doubtful accounts $41000
Credit Accounts receivable $41000
Debit Accounts receivable $15000
Credit Allowances for doubtful accounts $15000
(To reinstate account previously written off)
Debit Cash $15000
Credit Account receivable $15000
(To record collection of accounts receivable)
In double-entry bookkeeping, journal entries are the accounting entries that debit one account and credit the corresponding account.
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