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Entries for Uncollectible Accounts, using Direct Write-Off Method Journalize the following transactions in the accounts of...

Entries for Uncollectible Accounts, using Direct Write-Off Method

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, $51,200. The cost of goods sold was $27,600.
June 2 Received $13,800 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 $37,400 cash in full payment.

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

Jan. 19-sale
Jan. 19-cost
June 2
Oct. 23-reinstate
Oct. 23-collection

Homework Answers

Answer #1

Solution:

Date Account Titles and Explanation Debit Credit
Jan. 19 Account Receivable $ 51,200
Sales Revenue $ 51,200
(To record sales made on account)
Jan. 19 Cost Of Goods Sold $ 27,600
Inventory $ 27,600
( To record Cost of goods sold)
June. 2 Cash $ 13,800
Bad Debts Expense $ 37,400
Account Receivable $ 51,200
[ To record collection and bad debts expense]
Oct. 23 Accounts Receivables $ 37,400
Bad Debts Expense $ 37,400
(To record balance of accounts receivable is reinstate)
Oct. 23 Cash $ 37,400
Accounts Receivables $ 37,400
(To record payment received)
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