Question

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.

Required:

Journalize the above transactions in the accounts of Champion Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Date	Description	Debit	Credit
Jan 19	Accounts Receivable-Dr. Dale Van Dyken	30000
	Sales		30000
Jan 19	Cost of Merchandise Sold	20500
	Merchandise Inventory		20500
July 7	Cash	12000
	Bad Debt Expense	18000
	Accounts Receivable-Dr. Dale Van Dyken		30000
Nov 2	Accounts Receivable-Dr. Dale Van Dyken	18000
	Bad Debt Expense		18000
Nov 2	Cash	18000
	Accounts Receivable-Dr. Dale Van Dyken		18000