Question

Unit 7 Assesment Direct write off journal entries

This assessment addresses the following course objective(s):

Apply the accounting vocabulary

Complete the steps of the Accounting Cycle.

In this assignment, we will learn how to prepare journal entries to write off an uncollectable account using the Direct Write off method.

Barlow Company applies the direct write-off method in accounting for uncollectible accounts March 11 Barlow determines that it cannot collect $9.900 of its accounts receivable from its customer Loggan Company 29 Loggan Company unexpectedly pays its account in full to Barlow Company. Barlow records its recovery of this bad debt Prepare journal entries to record the above selected transactions of Barlow No Date General Journal Debit Credit

Answer 1

Answers:
Journal entries as below:
No	Date	General Journal	Debit	Credit
1	11-Mar	Bad Debt Expenses	$             9,900.00
		Accounts Receivables		$                   9,900.00
		(Bad debt accounted for uncollectible amount from Loggan Company)
2	29-Mar	Accounts Receivables	$             9,900.00
		Bad Debt Expenses		$                   9,900.00
		(Bad debt reversed for amount paid by Loggan Company which we have considered as incollectible)
3	29-Mar	Cash	$             9,900.00
		Accounts Receivables		$                   9,900.00
		(Amount received from Loggan Company)