On December 31, after making a concerted effort, management determines that it will not be able to collect the $1,200 owed to it by its customer Acme, Inc. The company uses the direct write-off method to account for uncollectible accounts. Required:
Prepare the journal entry to record the reinstatement of the account receivable.

Journal Entry to Record the Reinstatement of the Account Receivable:

Initial Write-off of Account:

December 1: Debit Bad Debts Expense $1,200

Credit Accounts Receivable (Acme, Inc.) $1,200

To write-off the account as uncollectible.

December 31: Debit Accounts Receivable (Acme, Inc.) $1,200

Credit Bad Debts Expense $1,200

To record the reinstatement of the accounts.

When the Cash is Collected:

December 31: Debit Cash $1,200

Credit Accounts Receivable (Acme, Inc.) $1,200

To record the cash receipt for reinstated account.

Explanation:

a) Data and Analysis:

December 1: Bad Debts Expense $1,200 Accounts Receivable (Acme, Inc.) $1,200

December 31: Accounts Receivable (Acme, Inc.) $1,200 Bad Debts Expense $1,200

December 31: Cash $1,200 Accounts Receivable (Acme, Inc.) $1,200

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it