Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Question Content Area Mar. 17: Received $3,240 from Shawn McNeely and wrote off the remainder owed of $5,020 as uncollectible. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Mar. 17 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area July 29: Reinstated the account of Shawn McNeely and received $5,020 cash in full payment. If an amount box does not require an entry, leave it blank. Date Account Debit Credit July 29 - Select - - Select - - Select - - Select - July 29 - Select - - Select - - Select - - Select -
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.
Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables.
Question Content Area
Mar. 17: Received $3,240 from Shawn McNeely and wrote off the remainder owed of $5,020 as uncollectible. If an amount box does not require an entry, leave it blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Mar. 17 |
|
- Select - | - Select - |
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - |
Question Content Area
July 29: Reinstated the account of Shawn McNeely and received $5,020 cash in full payment. If an amount box does not require an entry, leave it blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 29 |
|
- Select - | - Select - |
|
|
- Select - | - Select - | |
| July 29 |
|
- Select - | - Select - |
|
|
- Select - | - Select - |
The process of recording business transactions in the books of accounts for the first time is referred to as journal entry
For the purpose of recording the journal entry the double-entry system becomes the base.
While recording the journal entry the transactions are recorded as and when occurs hence it is also known as Day Book.
Journal entry types:
- Transfer entries
- Closing entries
- Adjusting entries
- Compound entries
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