v2.cengagenow.com Calculator Journalize the following transactions using the dir

Question

v2.cengagenow.com Calculator Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables. Apr. 1 Sold merchandise on account to Jim Dobbs, $7,600. The cost of the merchandise is $7,200 une 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment. If an amount box does not require an entry, leave it blank. Apr.1 Apr 1 June 10 Oct. 11 Oct. 11 All work saved.

Explanation / Answer

Solution: Date Account Titles and Explanation Debit Credit April 1. Accounts Receivable 7,600 Sales 7,600 April 1. Cost of Merchandise Sold 7,200 Merchandise Inventory 7,200 Date Account Titles and Explanation Debit Credit June 10 Cash 2,533.33 Bad Debt Expense 5,066.67 Accounts Receivable-Jim Dobbs 7,600.00 Working Notes: Cash 2,533.33 [7,600 x (1/3) =2,533.33 Bad Debt Expense 5,066.67 [7,600 x (2/3) Accounts Receivable-Jim Dobbs 7,600.00 Date Account Titles and Explanation Debit Credit Oct. 11 Accounts Receivable-Jim Dobbs 5,066.67 Bad Debt Expense 5,066.67 Oct. 11 Cash 5,066.67 Accounts Receivable-Jim Dobbs 5,066.67 Please feel free to ask if anything about above solution in comment section of the question.

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