15. Journalize the following transactions using the direct write-off method of a

Question

15.

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables:
Feb 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.
May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment.

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables:
Feb 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.
May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment.

Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

February 20

Bad Debt Expense Dr. 4000
Cash Dr. 1000
Accounts Receivable Cr. 5000

May 10

Accounts Receivable Dr. 4000

Bad Debt Expense Cr. 4000

Cash Dr. 4000

Accounts Receivable Cr. 4000

Thanks.

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