eBook

Show Me How

Print Item

Question Content Area

Entries for uncollectible accounts, using direct write-off method

Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables:

Date	Transaction
Jan. 19.	Sold merchandise on account to Dr. Kyle Norby, $53,300. The cost of goods sold was $28,800.
June 2.	Received $12,800 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.
Oct. 23.	Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $40,500 cash in full payment.

If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Jan. 19-sale
Jan. 19-cost
June 2
Oct. 23-reinstate
Oct. 23-collection