journalize the following transactions in the accounts of Webster Co. a hospital

Question

journalize the following transactions in the accounts of Webster Co. a hospital supply company that uses the direct write-off method of accounting for uncollectable receivable. March 11 Sold merchandise on account to E Dodge, $3,200. The cost of the merchandise sold was $1,250 May 1. Received $1,800 from E Dodge and wrote off the remainder owed on the sale of March 11 as uncollectable. Nov. 15. Reinstate the account of E Dodge that had been written off on May 1 and received $1,400 cash in full payment.

Explanation / Answer

(3) Journal entriesin the books of Webster Co. Date Particulars Post Ref. Debit ($) Credit($) Mar.11.
Account Receivables Account (E Dodge) Dodge To, Merchandise (sales) Account (Being sold merchandise to E dodge on credit)



3200 -
- 3200 May 1
Cash Account Bad Debts Account ( uncollectible) To, Account Receivables Account (E dodge). (Being cash $1800 receive from Dr. Pete Baker. $1400 become uncollectible )


1800 1400
- - 3200 Nov 15
Cash Account To, Bad debts Account (uncollectible) (Being bad debts recollected which fall bad on May. 01 )


1400 -
- 1400


Date Particulars Post Ref. Debit ($) Credit($) Mar.11.
Account Receivables Account (E Dodge) Dodge To, Merchandise (sales) Account (Being sold merchandise to E dodge on credit)



3200 -
- 3200 May 1
Cash Account Bad Debts Account ( uncollectible) To, Account Receivables Account (E dodge). (Being cash $1800 receive from Dr. Pete Baker. $1400 become uncollectible )


1800 1400
- - 3200 Nov 15
Cash Account To, Bad debts Account (uncollectible) (Being bad debts recollected which fall bad on May. 01 )


1400 -
- 1400

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