PE 9-1A Direct write-off method

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

Feb. 12. Received $800 from Leo Jorgenson and wrote off the remainder owed of $2,400 as uncollectible.
May 3. Reinstated the account of Leo Jorgenson and received $2,400 cash in full payment.


Answer:

Feb. 12 Cash 800
Bad Debt Expense 2,400
Accounts Receivable—Leo Jorgenson 3,200
May 3 Accounts Receivable—Leo Jorgenson 2,400
Bad Debt Expense 2,400
3 Cash 2,400
Accounts Receivable—Leo Jorgenson 2,400