Lumberjack,Inc.manufactures and sells skis and snowboards and uses the allowance method to account for its receivables.Lumberjack sold $16,000 of skis to North Slope Co.in January.In March,North Slope encountered financial difficulties due to a much lower than average snowfall and decreased tourism at its ski resort.North Slope declared bankruptcy in June at which time Lumberjack,Inc.wrote off the $16,000 account receivable.November and December brought record snowfall and North Slope was able to pay the $16,000 owed to Lumberjack on December 15.Prepare the entries on Lumberjacks' books to account for the sale,write-off,and recovery of North Slope's account receivable.

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The Answer of Lumberjack,Inc.manufactures and sells skis and snowboards and uses the allowance method to account for its receivables.Lumberjack sold $16,000 of skis to North Slope Co.in January.In March,North Slope encountered financial difficulties due to a much lower than average snowfall and decreased tourism at its ski resort.North Slope declared bankruptcy in June at which time Lumberjack,Inc.wrote off the $16,000 account receivable.November and December brought record snowfall and North Slope was able to pay the $16,000 owed to Lumberjack on December 15.Prepare the entries on Lumberjacks' books to account for the sale,write-off,and recovery of North Slope's account receivable.