Question 1.) Journalize the following transaction using the direct write-off method of accounting for uncollectible receivables.
July 01 Received $1,500 from Jane Zeeba in partial payment of the amount owed. The remaining balance of $3,500 was written off as uncollectible.
Oct 15 Reinstated the account of Jane Zeeba and received $3,500 cash in full payment.
Question 2.) Journalize the following transaction using the allowance method of accounting for uncollectible receivables.
July 01 Received $1,500 from Jane Zeeba in partial payment of the amount owed. The remaining balance of $3,500 was written off as uncollectible.
Oct 15 Reinstated the account of Jane Zeeba and received $3,500 cash in full payment.