Entries for uncollectible accounts, using direct write-off method Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 19. Sold merchandise on account to Dr. Kyle Norby, $50,100. The cost of goods sold was $27,100. June 2. Received $14,000 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible. Oct. 23. Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $36,100 cash in full payment. If an amount box does not require an entry, leave it blank. Jan. 19-sale Jan. 19-cost June 2 Accounts Receivable-Dr. Kyle Norby Sales ✓ Cost of Goods Sold Feedback Inventory Cash Bad Debt Expense ✓ Oct. 23-collection Cash ✓ ✓ Accounts Receivable-Dr. Kyle Norby Oct. 23-reinstate Accounts Receivable-Dr. Kyle Norby Bad Debt Expense ✓ ✓ ✓ Accounts Receivable-Dr. Kyle Norby ✓ 50,100 O O OO 00 27,100 36,100 36,100 ✓ 50,100 27,100 ✓ 36,100 Correct Check My Work Under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless and written-off. In such cases where an account receivable that has been written off is later collected, the account is reinstated.
Entries for uncollectible accounts, using direct write-off method Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 19. Sold merchandise on account to Dr. Kyle Norby, $50,100. The cost of goods sold was $27,100. June 2. Received $14,000 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible. Oct. 23. Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $36,100 cash in full payment. If an amount box does not require an entry, leave it blank. Jan. 19-sale Jan. 19-cost June 2 Accounts Receivable-Dr. Kyle Norby Sales ✓ Cost of Goods Sold Feedback Inventory Cash Bad Debt Expense ✓ Oct. 23-collection Cash ✓ ✓ Accounts Receivable-Dr. Kyle Norby Oct. 23-reinstate Accounts Receivable-Dr. Kyle Norby Bad Debt Expense ✓ ✓ ✓ Accounts Receivable-Dr. Kyle Norby ✓ 50,100 O O OO 00 27,100 36,100 36,100 ✓ 50,100 27,100 ✓ 36,100 Correct Check My Work Under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless and written-off. In such cases where an account receivable that has been written off is later collected, the account is reinstated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
chap 8 q1 fill in blanks
Transcribed Image Text:Entries for uncollectible accounts, using direct write-off method
Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible
receivables:
Jan. 19. Sold merchandise on account to Dr. Kyle Norby, $50,100. The cost of goods sold was $27,100.
June 2. Received $14,000 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.
Oct. 23. Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $36,100 cash in full payment.
If an amount box does not require an entry, leave it blank.
Jan. 19-sale
Jan. 19-cost
June 2
Accounts Receivable-Dr. Kyle Norby
Sales
Cost of Goods Sold
Feedback
Inventory
Cash
Bad Debt Expense
Accounts Receivable-Dr. Kyle Norby
Oct. 23-reinstate Accounts Receivable-Dr. Kyle Norby
Bad Debt Expense
Oct. 23-collection Cash
Accounts Receivable-Dr. Kyle Norby
50,100
27,100
000
36,100
36,100
50,100
27,100
36,100
Correct
▼ Check My Work
Under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless and written-off. In such cases where an account
receivable that has been written off is later collected, the account is reinstated.
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