JOURNAL ENTRIES FOR UNCOLLECTABLE ACCOUNTS – DIRECT WRITE-OFF METHOD

1.                Richard Ellis Purchased $500 in merchandise on account, terms n/30.

2.                After six months, the Richard Ellis account was written off as uncollectable.

3.                David Sans Purchased $280 worth of merchandise on account, terms n/30.

4.                Received notice that Davis Sans had filed for bankruptcy; therefore his account was written off.

5.                One year later, received $280 from David Sans  payment on his account.