Concept explainers
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.
Direct write-off method:
This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.
To journalize: The collection of $600 cash and write-off of Person R’s $1,350 uncollectible accounts, using direct write-off method.
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 8 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
- Direct write-off methodJournalize the following transactions, using the direct write-off methodof accounting for uncollectible receivables:Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.July 29 Reinstated the account of Shawn McNeely and received $1,000cash in full payment.arrow_forwardDirect Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,890 from Paula Spitler and wrote off the remainder owed of $2,250 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of Paula Spitler and received $2,250 cash in full payment. Dec. 20-Reinstate Dec. 20-Collectionarrow_forwardDirect Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $1,970 from Matthew Chapman and wrote off the remainder owed of $4,100 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of Matthew Chapman and received $4,100 cash in full payment. Dec. 20-Reinstate Dec. 20-Collectionarrow_forward
- Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,730 from William Pruitt and wrote off the remainder owed of $5,650 as uncollectible. If an amount box does not reguire an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of William Pruitt and received $5,650 cash in full payment. If an amount box does not require an entry, leave it blank. Dec. 20-Reinstate Dec. 20-Collectionarrow_forwardDirect Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Mar. 17: Received $2,590 from Paula Spitler and wrote off the remainder owed of $3,000 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of Paula Spitler and received $3,000 cash in full payment. July 29 3E July 29arrow_forwardJournalize the following transactions, using the allowance method of accounting for uncollectible receivables:Apr. 15. Received $800 from Jean Tooley and wrote off the remainder owed of $1,200 as uncollectible.Aug. 7. Reinstated the account of Jean Tooley and received $1,200 cash in full payment.arrow_forward
- Direct Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $3,150 from William Pruitt and wrote off the remainder owed of $2,680 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of William Pruitt and received $2,680 cash in full payment. Dec. 20-Reinstate Dec. 20-Collectionarrow_forwardJournalize the following transactions using the allowance method of accounting for uncollectible receivables. July 9. Received RO.1,200 from Abdullah and wrote off the remainder owed of RO.3,900 as uncollectible. Oct. 11. Reinstated the account of Abdullah and received RO3,900 cash in full payment.arrow_forwardDirect Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,060 from Ian Kearns and wrote off the remainder owed of $2,310 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of Ian Kearns and received $2,310 cash in full payment. If an amount box does not require an entry, leave it blank. Dec. 20-Reinstate Dec. 20-Collectionarrow_forward
- Journalize the following transactions using the allowance method of accounting foruncollectible receivables:Sep 1. Received $600 from Jane and wrote off the remainder owed of $1350 as uncollectible.Nov15.Reinstated the account Jane that had been written off on Sep 1 and received $1350 cash in full payment.arrow_forwardJournalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Mar. 17: Received $2,710 from Shawn McNeely and wrote off the remainder owed of $3,630 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of Shawn McNeely and received $3,630 cash in full payment. If an amount box does not require an entry, leave it blank. July 29 July 29arrow_forwardJournalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Mar. 17: Received $3,190 from Paula Spitler and wrote off the remainder owed of $5,900 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 fill in the blank e83d81f48fed021_2 fill in the blank e83d81f48fed021_3 fill in the blank e83d81f48fed021_5 fill in the blank e83d81f48fed021_6 fill in the blank e83d81f48fed021_8 fill in the blank e83d81f48fed021_9 July 29: Reinstated the account of Paula Spitler and received $5,900 cash in full payment. July 29 fill in the blank cf28d0043fd3fb7_2 fill in the blank cf28d0043fd3fb7_3 fill in the blank cf28d0043fd3fb7_5 fill in the blank cf28d0043fd3fb7_6 July 29 fill in the blank cf28d0043fd3fb7_8 fill in the blank cf28d0043fd3fb7_9 fill in the blank cf28d0043fd3fb7_11 fill in the blank cf28d0043fd3fb7_12arrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage