Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables:

Journalize the following transactions, using the direct write-off 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.

Answer:

Apr. 15 Cash 800 Bad Debt Expense 1,200 Accounts Receivable—Jean Tooley 2,000 Aug. 7 Accounts Receivable—Jean Tooley 1,200 Bad Debt Expense 1,200 7 Cash 1,200 Accounts Receivable—Jean Tooley 1,200