Chapter 9

1. Record the following transactions in general journal using the direct write-off method.

1. Jan 16 Sold merchandise on account to Frank Jewel, $840
2. Oct 10 Received notice from an attorney that Frank Jewel has declared bankruptcy and, accordingly, wrote off the balance.

2. Record the recovery of bad debt in general journal form using the direct write off method:
   1. Assume Frank Jewel pays the write off amount due on December 7

3. Record in general journal from the bad debt using the allowance method.

1. Wrote off the $600 in Jim Pearsons account on Nov 1, 2001.
2. On April 20, 2002, Pearson is able to make full payment on his account.