Journalize the Following Transactions Using the Direct Write-Off Method of Accounting

question 105

Essay

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables:
Feb 20 Received $500 from Andrew Warren and wrote off the remainder owed of $2,500 as uncollectible.
May 10 Reinstated the account of Andrew Warren and received $2,500 cash in full payment.

---

Definitions:

Assignees

Parties to whom rights or properties have been legally transferred, particularly used in contexts involving contracts or estates.

Assignor

An assignor is a person or entity that transfers rights or interests in a particular property, contract, or other asset to another party, called the assignee.

Obligor

A contractual party who agreed to do something for the other party.

Merger Clause

A clause in a written agreement within the statute of frauds that states that the written agreement accurately reflects the final, complete version of the agreement.