Question

On February 23: ABC Company made sales of merchandise for Mr. X on account having a value of

Br 4,000. On June 24: ABC Company determined that the account of Mr. X as uncollectible. On
November 28: ABC Company received a Br 4,000 check from Mr. X in payment of the account that
was previously written off.
Required: What would be the entries required;
a) To record sales
b) To record account write off
c) To reverse original written of Mr. X’s account
d) To record collection of the account

Answer 1

a. To record sales

Date Account Title Debit Credit

Feb 23 Accounts Receivable - Mr. X Br. 4,000

Sales Revenue Br. 4,000

b. To record account written off:

Date Account Title Debit Credit

June 24 Allowance for doubtful accounts Br. 4,000

Accounts Receivable - Mr. X Br. 4,000

c. To reverse original written of Mr. X’s account

Date Account Title Debit Credit

Nov 28 Accounts Receivable - Mr. X Br. 4,000

Allowance for doubtful accounts Br. 4,000

d. To record collection of the account

Date Account Title Debit Credit

June 24 Cash Br. 4,000

Accounts Receivable - Mr. X Br. 4,000