Direct Write-Off Method

Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables.

Oct. 2: Received $2,980 from Paula Spitler and wrote off the remainder owed of $3,550 as uncollectible. If an amount box does not require an entry, leave it blank.

Oct. 2

Dec. 20: Reinstated the account of Paula Spitler and received $3,550 cash in full payment.

Reinstate
Collection