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Jacht Company uses the allowance method to account for uncollectible receivables. On July 2, Jacht wrote off a $16,000 account receivable from customer J.
Jacht Company uses the allowance method to account for uncollectible receivables. On July 2, Jacht wrote off a $16,000 account receivable from customer J. Mears. On August 12, Jacht unexpectedly received full payment from Mears on the previously written off account. Jacht records an adjusting entry for bad debts expense of $820 on August 31. 9. Journalize Jacht's write-off of the uncollectible receivable. 10. Journalize Jacht's collection of the previously written off receivable. 11. Journalize Jacht's adjustment for bad debts expense. 9. Journalize Jacht's write-off of the uncollectible receivable. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jul. 2 10. Now journalize Jacht's collection of the previously written off receivable. (Record the transaction in two journal entries.) Start by making the entry to adjust the applicable expense account related to the collection of the previously written off receivable. Do not record the Cash portion of the entry yet. We will do that in the following step. Date Aug. 12 Accounts and Explanation Debit Credit
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