Journalize the following transactions in the accounts of Champion Medical Co., a medical equipment company that uses the direct write-off method

Journalize the following transactions in the accounts of Champion 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. Dale Van Dyken, $30,000. The cost of the merchandise sold was $20,500.

July  7. Received $12,000 from Dr. Dale Van Dyken and wrote off the remainder owed on the sale of January 19 as uncollectible.

Nov. 2. Reinstated the account of Dr. Dale Van Dyken that had been written off on 

July 7 and received $18,000 cash in full payment.

Answer:

Jan. 19 Accounts Receivable—Dr. Dale Van Dyken 30,000

Sales30,000

19 Cost of Merchandise Sold 20,500

Merchandise Inventory20,500

 July 7 Cash12,000

Bad Debt Expense18,000

Accounts Receivable—Dr. Dale Van Dyken 30,000

 Nov. 2 Accounts Receivable—Dr. Dale Van Dyken 18,000

Bad Debt Expense18,000

2 Cash18,000

Accounts Receivable—Dr. Dale Van Dyken 18,000