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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
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, $38,000. The cost of the merchandise sold was $20,500. July 7. Received $7,600 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 $30,400 cash in full payment. If an amount box does not require an entry, leave it blank. Jan. 19-sale Accounts Receivable-Dr. Sinclair Welby 38,000 V Sales 38,000 Jan. 19-cost Cost of Merchandise Sold Merchandise Inventory 20,500 20.500 July 7 Cash Bad Debt Expense 30,400 Accounts Receivable Dr. Sinclair Welby Nov. 2-reinstate Accounts Receivable Dr. Sinclair Welby 30.400 Bad Debt Expense 30.400 Nov. 2-collection Cash 30.400 Accounts Receivable Dr Sinclair Welby 30,400
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