Direct write-off method

Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables.

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Mar. 17: Received $3,420 from Shawn McNeely and wrote off the remainder owed of $7,660 as uncollectible. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Mar. 17	Accounts Payable-Shawn McNeelyAccounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsCashSalesCash	Cash	Cash
	Accounts Payable-Shawn McNeelyAccounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsBad Debt ExpenseSalesBad Debt Expense	Bad Debt Expense	Bad Debt Expense
	Accounts Payable-Shawn McNeelyAccounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsCashSalesAccounts Receivable-Shawn McNeely	Accounts Receivable-Shawn McNeely	Accounts Receivable-Shawn McNeely

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Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless.

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July 29: Reinstated the account of Shawn McNeely and received $7,660 cash in full payment. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
July 29	Accounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsBad Debt ExpenseDividendsSalesAccounts Receivable-Shawn McNeely	Accounts Receivable-Shawn McNeely	Accounts Receivable-Shawn McNeely
	Accounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsBad Debt ExpenseDividendsSalesBad Debt Expense	Bad Debt Expense	Bad Debt Expense
July 29	Accounts Payable-Shawn McNeelyAllowance for Doubtful AccountsAccumulated Depreciation-Office EquipmentCashSalesCash	Cash	Cash
	Accounts Receivable-Shawn McNeelyAllowance for Doubtful AccountsAccumulated Depreciation-Office EquipmentCashSalesAccounts Receivable-Shawn McNeely	Accounts Receivable-Shawn McNeely	Accounts Receivable-Shawn McNeely

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