Journalize the following transactions in the accounts of Simmons Co., a medical equipment company that uses the direct write off method of accounting for uncollectible receivables:
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Feb. 10. |
Sold merchandise on account to Dr. Pete Baker, $21,400. The cost of the merchandise sold was $12,600. |
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July 9. |
Received $13,000 from Dr. Pete Baker and wrote off the remainder owed on the sale of February 10 as uncollectible. |
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Oct. 27. |
Reinstated the account of Dr. Pete Baker that had been written off on July 9 and received $8,400 cash in full payment. |