PE 9-1B Direct write-off method

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

Oct. 2. Received $600 from Rachel Elpel and wrote off the remainder owed of $1,350 as uncollectible.
Dec. 20. Reinstated the account of Rachel Elpel and received $1,350 cash in full payment.


Answer:

Oct. 2 Cash 600
Bad Debt Expense 1,350
Accounts Receivable—Rachel Elpel 1,950
Dec. 20 Accounts Receivable—Rachel Elpel 1,350
Bad Debt Expense 1,350
20 Cash 1,350
Accounts Receivable—Rachel Elpel 1,350