Question

Question 22 (10 points) This company uses the Direct Write Off Method for accounting for bad debts: Prepare the following entries. Jan. 2nd - Wrote off $6,100 owed by Jim Jones who has filed bankruptcy May 7th - Wrote off $2,000 owed by Jane Lewis who has not made a payment in over a year Nov 3rd - Reinstated the account of Jane Lewis which was written off May. 7th and received $2,000 full payment Dec 5th - Received $700 payment from John Smith on his account. His account was written off two years ago. D oo - H1 - Headily

Answer 1

Date	General Journal	Debit	Credit
Jan-02	Depreciation expense	$   6,100
	Accounts receivable		$   6,100
May-07	Depreciation expense	$   2,000
	Accounts receivable		$   2,000
Nov-03	Accounts receivable	$   2,000
	Depreciation expense		$   2,000
Dec-05	Accounts receivable	$      700
	Depreciation expense		$      700
Dec-05	Cash	$      700
	Accounts receivable		$      700

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