Question

Company uses the direct​ write-off method to account for uncollectible receivables. On April ​18, Wears wrote off a $ 6 comma 100 account receivable from customer W. Jalan. On May ​24, Wears unexpectedly received full payment from Jalan on the previously written off account. 7. Journalize Wears​'s ​write-off on the uncollectible receivable. 8. Journalize Wears​'s collection of the previously written off receivable.

Answer 1

On April ​18, Wears wrote off a $ 6 comma 100 account receivable from customer W. Jalan

Debit Bad debt expense $6,100

Credit Accounts receivable $6,100

Being entries to write off debts due from W. Jalan

On May ​24, Wears unexpectedly received full payment from Jalan on the previously written off account

Debit Cash account $6,100

Credit Bad debt expense $6,100

Being entries to record cash collected for debt previously written off

Step-by-step explanation:

Ordinarily, When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

However, these entries are posted directly between the bad debt expense account and the accounts receivable if the company uses the direct write off method.