2. Wacks Company uses the direct write-off method to account for uncollectible receivables. On November 18, Wacks wrote off a $6.900 account receivable from customer W. Jeter. On December 24, Wacks unexpectedly received full payment from Jeter on the previously written off account. 7. Journalize Wacks's write-off on the uncollectible receivable. 8. Journalize Wacks's collection of the previously written off receivable. 7. Journalize Wacks's write-off on the uncollectible receivable. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Nov. 18 (1) (2) (3) (5) 8. Now journalize Wacks's collection of the previously written off receivable. (Record the transaction in two journal entries.) Start by making the entry to adjust the applicable expense account related to the collection of the previously written off receivable. Do not record the Cash portion of the entry yet. We will do that in the following step. Date Accounts and Explanation Debit Credit Dec. 24 (6) (8) (9) (10) Now record the cash collection of the receivable previously written off. Date Accounts and Explanation Debit Credit Print Dec 24 |(11) (12) (13) (14) (15) (1) a O Cash Accounts Receivable-Jeter Sales Revenue O Allowance for Bad Debts O Bad Debts Expense (2) O Cash O Accounts Receivable-Jeter Sales Revenue O Allowance for Bad Debts Bad Debts Expense O Cash O Sales Revenue (3) O O Accounts Receivable-Jeter O Allowance for Bad Debts Bad Debts Expense (4) O Cash O Sales Revenue O Accounts Receivable-Jeter O Allowance for Bad Debts O Bad Debts Expense O Sold goods on account. O Wrote off uncollectible accounts. (5) O O Collected cash on account. O Recorded bad debts expense for the period. O Reinstated previously written off account. O Sales Revenue (6) O O Accounts Receivable-Jeter O Allowance for Bad Debts O Bad Debts Expense Sales Revenue (7) O Accounts Receivable-Jeter O Allowance for Bad Debts Bad Debts Expense (8) Sales Revenue Accounts Receivable-Jeter Allowance for Bad Debts O Bad Debts Expense O Sales Revenue (9) O O Accounts Receivable-Jeter Allowance for Bad Debts O Bad Debts Expense Wrote off uncollectible accounts. (10) O Recorded bad debts expense for the period. Reinstated previously written off account. Sold goods on account. Sales Revenue (11) O Accounts Receivable-Jeter Allowance for Bad Debts O Cash Sales Revenue (12) O O Accounts Receivable-Jeter Allowance for Bad Debts O Cash Sales Revenue (13) O Accounts Receivable-Jeter Allowance for Bad Debts Cash Sales Revenue (7) O Accounts Receivable-Jeter O Allowance for Bad Debts Bad Debts Expense (8) Sales Revenue Accounts Receivable-Jeter Allowance for Bad Debts O Bad Debts Expense O Sales Revenue (9) O O Accounts Receivable-Jeter Allowance for Bad Debts O Bad Debts Expense Wrote off uncollectible accounts. (10) O Recorded bad debts expense for the period. Reinstated previously written off account. Sold goods on account. Sales Revenue (11) O Accounts Receivable-Jeter Allowance for Bad Debts O Cash Sales Revenue (12) O O Accounts Receivable-Jeter Allowance for Bad Debts O Cash Sales Revenue (13) O Accounts Receivable-Jeter Allowance for Bad Debts Cash Sales Revenue (14) O Accounts Receivable-Jeter Allowance for Bad Debts Cash (15) Wrote off uncollectible accounts. Collected cash on account. Recorded bad debts expense for the period. Sold goods on account