Direct Write-off Method
Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables:
July 9. Received $1,200 from Jay Burke and wrote off the remainder owed of $3,900 as uncollectible.
Oct. 11. Reinstated the account of Jay Burke and received $3,900 cash in full payment.
July 9 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . 3,900
Accounts Receivable—Jay Burke . . . . . . 5,100
Oct. 11 Accounts Receivable—Jay Burke. . . . . . . . . . . . 3,900
Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . 3,900
11 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900
Accounts Receivable—Jay Burke . . . . . . . . 3,900