engageNowv2 1 Online teaching and learning resource from Cengage Leaming Entries
ID: 2588427 • Letter: E
Question
engageNowv2 1 Online teaching and learning resource from Cengage Leaming Entries for Uncollectible Receivables, using Allowance Method ournalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables May 24 Sold merchandise on account to Old Town Cafe $11,200. The cost of goods sold was $8,100. Sept. 30 Received $2,900 from Old 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 $8,300 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. 7-reinstated Dec, 7-collection MacBook AirExplanation / Answer
May 24 sale:
Accounts receivable Dr 11200
Sales Cr 11200
May 24 cost:
Cost of goods sold Dr 8100
Inventory Cr 8100
Sept 30:
Cash Dr 2900
Allowance for Doubtful debts Dr 8300
Accounts receivable Cr 11200
Dec 7: Reinstated:
Accounts receivable Dr 8300
Allowance for Doubtful debts Cr 8300
Dec 7: Collection:
Cash Dr 8300
Accounts receivable Cr 8300
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