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:

Oct. 2. Received $600 from Rachel Elpel and wrote off the remainder owed of $1,350 as uncollectible.

Dec. 20. Reinstated the account of Rachel Elpel and received $1,350 cash in full payment.

Answer:

Oct. 2 Cash 600 Bad Debt Expense 1,350 Accounts Receivable—Rachel Elpel 1,950 Dec. 20 Accounts Receivable—Rachel Elpel 1,350 Bad Debt Expense 1,350

20 Cash 1,350 Accounts Receivable—Rachel Elpel 1,350