Journalize the following transactions in the accounts of Arrow Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables:

 EX 9-3 Entries for Uncollectible Accounts, Using Direct Write-Off Method
Journalize the following transactions in the accounts of Arrow 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. Sinclair Welby, $77,000. The cost of the merchandise sold was $52,600.
July    7.    Received $30,800 from Dr. Sinclair Welby and wrote off the remainder owed on the sale of January 19 as uncollectible.
Nov.    2.    Reinstated the account of Dr. Sinclair Welby that had been written off on July 7 and received $46,200 cash in full payment.

 

Date	Account titles	Debit	Credit
19-Jan	Accounts Receivable	$            77,000
	Sales		$      77,000
19-Jan	Cost of Merchandise Sold	$            52,600
	Merchandise Inventory		$      52,600
7-Jul	Cash	$            30,800
	Bad Debt Expense	$            46,200
	Accounts Receivable		$      77,000
2-Nov	Accounts Receivable	$            46,200
	Bad Debt Expense		$      46,200
2-Nov	Cash	$            46,200
	Accounts Receivable		$      46,200

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