Question

2) Moonlight Company wrote off the account of one of its customers, X, in 2018 for $500. On January 21, 2019, X unexpectedly repaid his account in full. The company uses the direct write-off method to account for uncollectible receivables. Journalize the entries required for Moonlight Company on January 21, 2019

Answer 1

Answer:

A journal entry was carried out for Moonlight Company for January 21, 2019, and is shown below in the explanation section

Explanation:

Solution

Given that:

Moonlight Company Journal Entries on January 21, 2019

JOURNAL ENTRY  

Date                Account name                    Debit         Credit

Jan. 21, 2019               Cash                       500  

     (Income statement -Bad debts recovered)              500

         (record the bad debts recovery from customer X)