Question

nce method to account for uncollecible receivables. On September 2, Jeter wrote off a $16,600 account receivable from customer J. Macks. On October , Jeter unexpectedly received full payment from Macks on the previously written o account Jeter records an adjusting entry for bad debts 9. Joumalze Jeter's wrhe off of the uncollecible recchrable. Joumaize Jeter's collection of the previously written off receivable. 10. loumsze Jeler's edust accounts ana rxpananon Scpt 2 Now journelize Jeler's colection of the previously willen olTreceirsble Recrd the Iranssclion in two journel entries) Start by making the antry to adjust the applicable axpense account ralated to tha colaction of the praviousiy writen off racelvable. Do not recond the Cash portion af the antry yat. Wa will do that in a toilowing stap. Date Accounts and Explanation Debit Credit Out 12 Now rocord the cash colection of the recavable previously wrttan a Date Accounts and Explanation Debit Credit Oct 12

Answer 1

Solution:

Journal Entries
Event	Particulars	Debit	Credit
02-Sep	Allowance for doubtful accounts Dr	$16,600
	To Accounts receivables		$16,600
	(To record written of accounts receivables)
12-Oct	Accounts receivables Dr	$16,600
	To Allowance for doubtful accounts		$16,600
	(To reinstate account previously written off)
12-Oct	Cash Dr	$16,600
	To Accounts receivables		$16,600
	(To record collection of accounts previously written off)
31-Oct	Bad debt expense Dr	$880
	To Allowance for doubtful accounts		$880
	(To record adjustment for bad debt expense)