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Chapter 8 Practice Problems Problem #1: Direct Write Off Method Mar 3, sold merchandise on account to Johnson, Inc., $25,800. The merchandise had a cost of $12,650 Date Accounts Dr Cr April 10 received $20,000 cash from Johnson, Inc. and wrote off the balance as uncollectible. Date Accounts Dr Cr Aug 25, reinstated the Johnson, Inc, account that was previously written off. Received the full amount due on the account. Date Accounts Dr Cr Date Accounts Dr Cr Chapter 8 Practice Problems Problem #2: Allowance Method Jan 20, sold merchandise on account to ABC Company for $5,000. The merchandise had a cost of $3,000 Date Accounts Dr Cr Jan 30, received 2,500 cash from ABC Company and wrote off the balance as uncollectible. Date Accounts Dr Cr April 1, reinstated the ABC Company account that had been previously written off. Received the full amount due on the account. Date Accounts Dr Cr Date Accounts Dr Cr