Journal entries for bad debts
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1.) Journalize the following transaction using the direct write-off method of accounting for uncollectible receivables.
July 01 Received $1,500 from Jane Zeeba in partial payment of the amount owed. The remaining balance of $3,500 was written off as uncollectible.
Oct 15 Reinstated the account of Jane Zeeba and received $3,500 cash in full payment.
2.)Journalize the following transaction using the allowance method of accounting for uncollectible receivables.
July 01 Received $1,500 from Jane Zeeba in partial payment of the amount owed. The remaining balance of $3,500 was written off as uncollectible.
Oct 15 Reinstated the account of Jane Zeeba and received $3,500 cash in full payment
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Solution Summary
Journal entries for uncollected amounts under direct method and allowance method
Education
- Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
- Bachelor of Commerce, West Bengal University
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