Answer:
Dr Accounts receivable $ 6,400
Cr Sales $ 6,400
Dr Cost of Goods $ 3,000
Cr Inventories $ 3,000
Dr Cash $ 500
Cr Accounts receivable $ 500
Dr Bad Debt Expense $ 5,900
Cr Accounts receivable $ 5,900
Dr Accounts receivable $ 5,900
Dr Bad Debt Expense $ 5,900
Dr Cash $ 5,900
Cr Accounts receivable $ 5,900
Explanation:
Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $6,400. The cost of goods sold was $3,000.
Dr Accounts receivable $ 6,400
Cr Sales $ 6,400
Dr Cost of Goods $ 3,000
Cr Invetories $ 3,000
June 2 Received $500 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.
Dr Cash $ 500
Cr Accounts receivable $ 500
Dr Bad Debt Expense $ 5.900
Cr Accounts receivable $ 5.900
In the direct Write-Off method, bad debts are directley cancel at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount.
Oct. 23 Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $5,900 cash in full payment.
Dr Accounts receivable $ 5,900
Dr Bad Debt Expense $ 5,900
Dr Cash $ 5,900
Cr Accounts receivable $ 5,900
