Question

Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables.

Question Content Area
Mar. 17: Received $3,200 from Shawn McNeely and wrote off the remainder owed of $5,630 as uncollectible. If an amount box does not require an entry, leave it blank.
Date
Account
Debit
Credit

Mar. 17
Accounts Payable-Shawn McNeelyAccounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsCashSales



Accounts Payable-Shawn McNeelyAccounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsBad Debt ExpenseSales



Accounts Payable-Shawn McNeelyAccounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsCashSales



Question Content Area
July 29: Reinstated the account of Shawn McNeely and received $5,630 cash in full payment. If an amount box does not require an entry, leave it blank.
Date
Account
Debit
Credit

July 29
Accounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsBad Debt ExpenseDividendsSales



Accounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsBad Debt ExpenseDividendsSales



July 29
Accounts Payable-Shawn McNeelyAllowance for Doubtful AccountsAccumulated Depreciation-Office EquipmentCashSales



Accounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsAccumulated Depreciation-Office EquipmentCashSales

Answer 1

McNeely pays up! March write-off reversed, cash in hand. July's other stuff? Mystery unsolved, need more context than that.

The provided information contains two separate transactions with Shawn McNeely, one in March and another in July. Here are the journal entries for both transactions using the direct write-off method:

Mar. 17:

Account Debit Credit

Cash 3,200

Accounts Receivable - Shawn McNeely 5,630

Allowance for Doubtful Accounts 8,830

Bad Debt Expense 8,830

We receive $3,200 cash, debiting the Cash account and crediting the Accounts Receivable account for Shawn McNeely.

Since the remaining balance of $5,630 is deemed uncollectible, we write it off by debiting the Bad Debt Expense account and crediting the Allowance for Doubtful Accounts.

July 29:

Account Debit Credit

Accounts Receivable - Shawn McNeely 5,630

Allowance for Doubtful Accounts 5,630

Cash 5,630

Shawn McNeely pays the full outstanding balance of $5,630. We reverse the previous write-off by debiting the Accounts Receivable account and crediting the Allowance for Doubtful Accounts.

Since we receive the full amount owed, there's no need to adjust the Bad Debt Expense or any other accounts.

Please note that the transactions in July include additional entries unrelated to Shawn McNeely. These might contain errors or irrelevant information. Be sure to review the complete financial picture before considering them in your accounting records.