Entries for Uncollectible Accounts, using Direct Write$-$Off Method

Journalize the following transactions in the accounts of Arrow Medical Co$.,$ a medical equipment company that uses the direct write$-$off method of accounting for uncollectible receivables:

Jan. $19.$Sold merchandise on account to Dr$.$ Sinclair Welby, $$45,100.$ The cost of the merchandise sold was $$24,400.$July $7.$Received $$9,900$ from Dr$.$ Sinclair Welby and wrote off the remainder owed on the sale of January $19$ as uncollectible.Nov. $2.$Reinstated the account of Dr$.$ Sinclair Welby that had been written off on July $7$ and received $$35,200$ cash in full payment.

If an amount box does not require an entry, leave it blank.

Jan. $19-$sale

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyAllowance for Doubtful AccountsCashSalesAccounts Receivable$-$Dr$.$ Sinclair Welby

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyAllowance for Doubtful AccountsCashSalesSales

Jan. $19-$cost

Accounts Receivable$-$Dr$.$ Sinclair WelbyAccounts Payable$-$Dr$.$ Sinclair WelbyCashCost of Merchandise SoldMerchandise InventoryCost of Merchandise Sold

Accounts Receivable$-$Dr$.$ Sinclair WelbyAccounts Payable$-$Dr$.$ Sinclair WelbyCashCost of Merchandise SoldMerchandise InventoryMerchandise Inventory

July $7$

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyAllowance for Doubtful AccountsCashCost of Merchandise SoldCash

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyAllowance for Doubtful AccountsBad Debt ExpenseCost of Merchandise SoldBad Debt Expense

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyAllowance for Doubtful AccountsBad Debt ExpenseCashAccounts Receivable$-$Dr$.$ Sinclair Welby

Nov. $2-$reinstate

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyAllowance for Doubtful AccountsBad Debt ExpenseCost of Merchandise SoldAccounts Receivable$-$Dr$.$ Sinclair Welby

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyAllowance for Doubtful AccountsBad Debt ExpenseCost of Merchandise SoldBad Debt Expense

Nov. $2-$collection

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyCashCost of Merchandise SoldSalesCash

Accounts Payable$-$Dr$.$ Sinclair WelbyAccounts Receivable$-$Dr$.$ Sinclair WelbyCashCost of Merchandise SoldSalesAccounts Receivable$-$Dr$.$ Sinclair Welby

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