Samuel Service Company uses the direct write-off method for recording bad debts. Journalize the following transactions for Mid-Iowa:
2015
Mar. 13 Wrote off Pat's account for $500
Apr. 17 Wrote off Cole's account for $175
Jul. 5 Recovered $55 from Cole
2016
Jan. 9 Recovered $250 from Pat
What will be an ideal response?
Answer:
2015
Mar 13 Bad Debts Expense 500
Accounts Receivable, Pat 500
Apr. 17 Bad Debts Expense 175
Accounts Receivable, Cole 175
Jul. 5 Accounts Receivable, Cole 55
Bad Debts Expense 55
Cash 55
Accounts Receivable, Cole 55
2016
Jan. 9 Accounts Receivable, Pat 250
Bad Debts Recovered 250
Cash 250
Accounts Receivable, Pat 250
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