Using the direct write-off method of accounting for uncollectible receivables. Feb. 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible. May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment. Required:Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles.

Given:

Feb. 20: Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.

May 10: Reinstated the account of Andrew Warren and received $4,000 cash in full payment

Required: Journalize using direct write-off method of accounting for uncollectible receivables.

Journalize:

February 20

Bad Debt Expense Dr.: 4000(debit)

Cash Dr.: 1000(debit)

Accounts Receivable Cr.: (4000+1000) 5000(credit)

May 10

Accounts Receivable Dr.: 4000(debit)

Bad Debt Expense Cr.: 4000(credit)

Cash Dr.: 4000(debit)

Accounts Receivable Cr. 4000(credit)

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