Answer:
April 1
Dr Accounts Receivable $8,400
Cr Sales $8,400
Dr Cost of Merchandise Sold $3,360
Cr Merchandise Inventory $3,360
June 10
Dr Cash $2,800
Dr Allowance for Doubtful Accounts $5,600
Cr Accounts Receivable—Jim Dobbs $8,400
Oct. 11
Dr Accounts Receivable—Jim Dobbs $5,600
Cr Allowance for Doubtful Accounts $5,600
11 Dr Cash $5,600
Cr Accounts Receivable—Jim Dobbs $5,600
Explanation:
Preparation of the journal entries using the direct write-off method of accounting for uncollectible receivables.
April 1
Dr Accounts Receivable $8,400
Cr Sales $8,400
Dr Cost of Merchandise Sold $3,360
Cr Merchandise Inventory $3,360
June 10
Dr Cash $2,800
(1/3*$8,400)
Dr Allowance for Doubtful Accounts $5,600
($8,400-$2,800)
Cr Accounts Receivable—Jim Dobbs $8,400
Oct. 11
Dr Accounts Receivable—Jim Dobbs $5,600
Cr Allowance for Doubtful Accounts $5,600
11 Dr Cash $5,600
Cr Accounts Receivable—Jim Dobbs $5,600
