Entries for Uncollectible Receivables, using Allowance Method Journalize the fol

Question

Entries for Uncollectible Receivables, using Allowance Method Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible May 24 Sold merchandise on account to Old Town Cafe $19,800. The cost of goods sold was $14,300 Sept. 30 Received $5,100 from Oid Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $14,700 cash in full payment. For a compound transaction, if an amount box does not require an entry, leave it blank May 24-sale May 24-cost Sept. 30 Dec.7renstated

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit May 24 Account receivable 19800 Sales revenue 19800 (To record sales) May 24 Cost of goods sold 14300 Merchandise inventory 14300 (To record cost of goods sold) Sep 30 Cash 5100 Allowance for doubtful account 14700 Account receivable 19800 (To record write off) Dec 7 Account receivable 14700 Allowance for doubtful accounts 14700 (To record amount reinstated) Dec 7 Cash 14700 Account receivable 14700 (To record amount received)

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