Using the direct write-off method of accounting for uncollectible receivables.
April 1 | Sold merchandise on account to Jim Dobbs, $8,500. The cost of the merchandise is $3,400. |
June 10 | Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. |
Oct. 11 | Reinstated the account of Jim Dobbs for and received cash in full payment. |
Required:
Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to nearest dollar amount. |
Journal entries using the direct write-off method of accounting for uncollectible receivables
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