Answer:
Journal Entry
Date Particulars Debit Credit
Mar. 17 Cash $275
Bad Debts $ 1000
Accounts Receivable( Shawn McNeely) $1275
As cash is received and also bad debts are written off from the same person a combined entry can be made for the accounts receivable.
When direct write off method is used the allowance for uncollectibles is not created. The bad debts are directly written off against the accounts receivable.
Answer:
Debit Cash account $275
Debit Bad debt expense $1,000
Credit Accounts receivable $1,275
Being entries to record cash and bad debt from receivables due.
Explanation:
When a company makes sales on account,the entries required are
Debit accounts receivable and
Credit sales.
Based on assessment, some or all of the receivables may be uncollectible.
Using the direct method to account for receivables that may be uncollectible, the entries required are
Debit Bad debt expense
Credit Accounts receivable
When cash is collected , the debit entry is posted to the cash account.
Accounts receivable before adjustment = $1,000 + $275
= $1,275
