Entries for uncollectible accounts, using direct write$-$off method Jan. $19-$sale

Jan. $19-$cost

June $2$

Accounts Receivable$-$Dr$.$ Kyle Norby

Oct. $23-$reinstate

Accounts Receivable$-$Dr$.$ Kyle Norby

$$

Bad Debt Expense $$

Oct. $23-$collection

Cash

$$

Accounts Receivable$-$Dr$.$ Kyle Norby

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Under the direct write$-$off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless and written$-$off. In such cases

where an account receivable that has been written off is later collected, the account is reinstated.

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:

Jan. $19.$ Sold merchandise on account to Dr$.$ Kyle Norby, $$54,100.$ The cost of goods sold was $$29,200.$

June $2.$ Received $$12,400$ 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 $$41,700$ cash in full payment.

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

Jan. $19-$sale

${?}_{\text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}\text{R}\text{e}\text{c}\text{e}\text{i}\text{v}\text{a}\text{b}\text{l}\text{e}-Dr.\text{K}\text{y}\text{l}\text{e}\text{N}\text{o}\text{r}\text{b}\text{y}}^{}$

Jan. $19-$cost

Cost of Goods Sold

Inventory

June $2$

Bad Debt Expense $$

Accounts Receivable$-$Dr$.$ Kyle Norby

Oct. $23-$reinstate

Accounts Receivable$-$Dr$.$ Kyle Norby

Bad Debt Expense