Knowledge Check $01$

On December $31,$ management had determined that it would not be able to collect the $\backslash$$$1,200$ owed to it by one of its customers. On January $15$ in the next year, a check in the amount of $\backslash (\backslash$$ $600\backslash )$ was unexpectedly received from this customer. Management does not expect any future collections from this customer. The company uses the direct write$-$off method to account for its uncollectible accounts.

Prepare the necessary journal entry on January $15$ to record the events by selecting the account names from the drop$-$down menus and entering the dollar amounts in the debit or credit columns.

Prepare two separate journal entries. The first journal entry is to record the reinstatement of the account receivable and the second is to record the receipt of cash.

Journal entry worksheet

Prepare the journal entry to record the reinstatement of the account receivable.

Note: Enter debits before credits.