receive a check for 650 from dorothy in payment of her account which was previously written off as a bad debt. reinstate her accounts receivable in the general journal
To reinstate Dorothy's accounts receivable in the general journal after receiving a check for $650, you would typically follow these steps:
1. Open the general journal: The general journal is where all of the company's financial transactions are recorded.
2. Identify the transaction details: In this case, the transaction involves receiving a check from Dorothy for $650 to settle her previously written-off bad debt.
3. Determine the accounts affected: There are two main accounts involved in this transaction: "Accounts Receivable" and "Bad Debt Expense."
4. Debit the "Accounts Receivable" account: Since the payment is received, the first account to be debited would be "Accounts Receivable" to record the reinstatement of the amount owed. The amount to be debited would be $650.
5. Credit the "Bad Debt Expense" account: The second account to be credited would be "Bad Debt Expense" since the bad debt is now resolved. The amount to be credited would also be $650.
6. Record the transaction: In the general journal, make an entry for this transaction using the debit and credit format. It should look something like this:
Date | Account | Debit | Credit
-------------------------------
[Date] | Accounts Receivable | $650 |
[Date] | Bad Debt Expense | | $650
7. Provide additional details: If needed, you can include a brief description or explanation of the transaction in the journal entry.
Remember to consult your company's accounting policies and follow any specific guidelines or approval processes they may have in place.