Entries for Uncollectible Receivables using Allowance Method Journalize the foll

Question

Entries for Uncollectible Receivables using Allowance Method Journalize the following transactions in the accounts of Žippy Intariors Company, a restaurant supply company that uses the allowance mathod of accounting for uncollectible receivables May 24 Sold merchandise on account to Old Town Cafe 11,100. The cost of goods sold was $8,000. Received $2.400 from Old Towm Cafe and wrote off the remainder owed on the sele of May 24 as Sept. 30 uncollectible. Reinstated the account of Old Town Cafe that had been written off on September 30 and received?8,700 cash in full payment. For a compound transaction, if an amount box doss not require sn entry, leave it blank May 24-sals May 24 cost Sept 30 Dec. 7-rainstated Dec. 7-collection Check My Work Previous Next save and Exit submit Assignment for Grading

Explanation / Answer

Journal entry :

Date accountss & explanation debit credit may 24 Account receivable 11100      Sales revenue 11100 (To record credit sales) may 24 Cost of goods sold 8000    Merchandise inventory 8000 (To record cost of goods sold) Sep 30 Cash 2400 Allowance for doubtful accounts 8700      Account receivable 11100 (To record cash collection and write off) Dec 7 Account receivable 8700      Allowance for doubtful accounts 8700 (To record account reinstate) Dec 7 Cash 8700      Account receivable 8700 (To record amount received)

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