Question

Journalize the following transactions in the accounts of Champion 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. Dale Van Dyken, $54,500. The cost of the merchandise sold was $29,400.

July 7. Received $14,200 from Dr. Dale Van Dyken and wrote off the remainder owed on the sale of January 19 as uncollectible.

Nov. 2. Reinstated the account of Dr. Dale Van Dyken that had been written off on July 7 and received $40,300 cash in full payment.

Jan. 19-sale	Accounts Receivable-Dr. Dale Van Dyken
	Sales
Jan. 19-cost	Cost of Merchandise Sold
	Merchandise Inventory
July 7
Nov. 2-reinstate
Nov. 2-collection

Answer 1

Journal Entry- Champion Medical Co.
Date	Accoutn Tittle	Debit	Credit
19-Jan	Account Recievable- Dale Vyan	$54,500.00
	Sales		$54,500.00
	To Record Sales made
10-Jan	Cost of Goods Sold	$29,400.00
	Merchandised Inventory		$29,400.00
	To Record Cost of Goods Sold
7-Jul	Cash	$14,200.00
	Bad Debt Expense	$40,300.00
	Account Recievable- Dale Vyan		$54,500.00
	To Record Payment Received
2-Nov	Account Receivable	$40,300.00
	Bad Debt Expense		$40,300.00
	TO Record of reinstate of Bad doubtful debt
2-Nov	Cash	$40,300.00
	Account Receivable		$40,300.00
	TO Record of received of cash agst Bad Debt amount