Question

Entries for Uncollectible Accounts, using Direct Write-Off Method 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: July 7. Jan. "Sold merchandise on account to Dr. Dale Van Dyken, $60,300. The cost of the merchandise sold was $32,600. 19. Received $15,100 from Dr. Dale Van Dyken and wrote off the remainder owed on the sale of January 19 as uncollectible. Nov. Reinstated the account of Dr. Dale Van Dyken that had been written off on July 7 and received $45,200 cash 2. in full payment. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 19-sale Jan. 19-cost July 7 Nov. 2-reinstate Nov. 2-collection

Answer 1

Jan. 19 -Sales $ 60,300 $60,300 Accounts Receivables Sales Cost of Goods Sold Merchandise Inventory Jan. 19 - Cost $ 32,600 $32,600 July. 7 Bad Debt Expenses Cash Accounts Receivables $ $ 45,200 15,100 $60,300 Nov.2 -reinstate $ 45,200 Accounts Receivables Bad Debt Expenses $45,200 $ 45,200 Nov. 2-Collection Cash Accounts Receivables $45,200 Working Notes: Bad Debt Expenses = $60,300-$15,100 = $45,200 July. 7