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Entries for Uncollectible Accounts, using Direct Write-Off Method Journalize the following transactions in the accounts of Arrow Medical Co., a medical equipment company that uses
Entries for Uncollectible Accounts, using Direct Write-Off Method
Journalize the following transactions in the accounts of Arrow 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. Sinclair Welby, $38,800. The cost of the merchandise sold was $21,000. |
July 7. | Received $11,300 from Dr. Sinclair Welby and wrote off the remainder owed on the sale of January 19 as uncollectible. |
Nov. 2. | Reinstated the account of Dr. Sinclair Welby that had been written off on July 7 and received $27,500 cash in full payment. |
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