Madonna’s Music Store uses the direct write-off method i
Question and Solution
Madonna’s Music Store uses the direct write-off method in accounting for uncollectible accounts. Record the following transactions in general journal form: 20-1 May 5 Wrote off $2,360 owed by Neal Dammond, who has no assets. July 18 Wrote off $1,255 owed by Maxine Mouse, who declared bankruptcy. Sept. 20 Reinstated the account of Neal Dammond, which had been written off on May 5, and received $2,360 cash in full settlement. 20-2 May 11 Reinstated the account of Maxine Mouse, which had been written off in the previous year, and received $1,255 cash in full settlement.