Question

On February 23: ABC Company made sales of merchandise for Mr. X on account having a value of
Br 4,000. On June 24: ABC Company determined that the account of Mr. X as uncollectible. On
November 28: ABC Company received a Br 4,000 check from Mr. X in payment of the account that
was previously written off.
Required: What would be the entries required;
a) To record sales
b) To record account write off
c) To reverse original written of Mr. X’s account
d) To record collection of the account

Answer 1

Answer:

a. To record sales

Date                  Account Title                                          Debit                Credit

Feb 23              Accounts Receivable - Mr. X             Br. 4,000

                         Sales Revenue                                                           Br. 4,000

b. To record account written off:

Date                  Account Title                                          Debit                Credit

June 24            Allowance for doubtful accounts      Br. 4,000

                          Accounts Receivable - Mr. X                                   Br. 4,000

c. To reverse original written of Mr. X’s account

Date                  Account Title                                          Debit                Credit

Nov 28             Accounts Receivable - Mr. X           Br. 4,000

                        Allowance for doubtful accounts                              Br. 4,000

d. To record collection of the account

Date                  Account Title                                          Debit                Credit

June 24            Cash                                                     Br. 4,000

                          Accounts Receivable - Mr. X                                   Br. 4,000