Asked by Talia Miller on Jun 29, 2024
Verified
Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.?Feb. 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment.
Direct Write-off Method
An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.
Uncollectible Receivables
Amounts owed to a company that it does not expect to collect and thus considers a loss.
Journalize
The process of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.
- Acknowledge the process and ramifications of employing the aging and direct write-off methods for the recording of bad debts.
- Documenting operations regarding receivables, which includes acknowledging bad debt expense and reactivating accounts.
Verified Answer
May 10 Accounts Receivable-Andrew Warren ~~~~~~~~~~~~~ 4,000
Bad Debt Expense ~~~~~~~~~~~~~ 4,000
10 Cash ~~~~~~~~~~~~~ 4,000
Accounts Receivable-Andrew Warren ~~~~~~~~~~~~~ 4,000
Learning Objectives
- Acknowledge the process and ramifications of employing the aging and direct write-off methods for the recording of bad debts.
- Documenting operations regarding receivables, which includes acknowledging bad debt expense and reactivating accounts.
Related questions
Discuss the Two Methods for Recording Bad Debt Expense ...
This Method Is Most Often Used by Small Companies with ...
This Method Is Based on the Theory That Older Accounts ...
The________ Method of Accounting for Bad Debts Records the Loss ...
Journalize the Following Transactions in the Accounts of Simmons Company ...