Using the allowance method of accounting for uncollectible receivables. Required

Question

Using the allowance method of accounting for uncollectible receivables.

Required:

Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Please include the correct dates on your Journal. ***This Journal should have 11 rows.

Chart of accounts...

April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400. June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.

Explanation / Answer

Date Accounts Title Dr in $ Cr in $ 1-Apr Accounts Receivable -Jim Dobbs Dr. 7200 Sales Cr. 7200 1-Apr Cost of Goods sold Dr. 5400 Inventory Cr. 5400 10-Jun Allowance for Doubtful Debts Dr. 4800 Cash Dr. 2400 Accounts Receivable -Jim Dobbs Cr. 7200 11-Oct Account receivable-Jim Dobbs Dr. 4800 Allowance for Doubtful debts Cr. 4800 11-Oct Cash Dr. 4800 Accounts Receivable -Jim Dobbs Cr. 4800

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