Question

Wacks Company uses the direct write-off method to account for uncollectible receivables. On September 18, Wacks wrote of a 56,200 account receivable from customer W. Jada. On October 24, Wacks unexpectedly received full payment from Jada on the previously written off account 7. Journalize Wacks's write-off on the uncollectible receivable 8. Journalize Wacks's collection of the previously written off receivable, 7. Journalize Wacks's write-off on the uncollectible receivable. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table) Date Accounts and Explanation Debit Credit Sept. 18

Answer 1

7.)	Date	Account Titles & Explanation	Debit $	Credit $
	Sept.18	Bad Debt Expense	6,200
		Accounts Receivable- W.Jada		6,200
8.)	Date	Account Titles & Explanation	Debit $	Credit $
	Oct.24	Accounts Receivable- W.Jada	6,200
		Bad Debt Expense		6,200
	Oct.24	Cash	6,200
		Accounts Receivable- W.Jada		6,200