Thanks EX 93 Entries for uncollectible accounts using direct

Thanks

EX 9-3 Entries for uncollectible accounts, using direct write-off method Journalize the following transactions in the accounts of Midwest Medical Co equipment company that uses the direct write-off method of accounting for receivables Feb. 3. Sold merchandise on account to Dr. Jill Hall, $17,340. The cost of the merchan Sept. 10. Received $5,000 from Dr. Jill Hall and wrote off the remainder owed on the sale dise sold was $9,500. of February 3 as uncollectible. and received $12,340 cash in full payment. Dec. 21. Reinstated the account of Dr. Jill Hall that had been written off on September 10

Solution

Journal entry :

Date	accounts & explanation	debit	credit
Feb 3	Account receivable a/c	17340
	Sales revenue a/c		17340
	(To record sales)
Sep 10	Cash a/c	5000
	Bad debt expenses a/c	12340
	Account receivable-Dr. Jill Hall a/c		17340
	(To record cash received and bad debt expenses)
Dec 21	Account receivable-Dr. Jill Hall a/c	12340
	Bad debt expenses		12340
	(To record reinstate account)
	Cash	12340
	Account receivable-Dr. Jill Hall a/c		12340
	(To received full payment)