8.5

IJUJUH ercises and Exercises.PDF (1.25 MB) Page of 8 15 ZOOM + W ME HOW Journalize 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, $24,450. The cost of goods sold was $14,500. Sept. 30. Received $9,000 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 $15,450 cash in full payment EX 8-5 Entries to write off accounts receivable Obj. 3, 4 Creative Solutions Company, a computer consulting firm, has decided to write off the $13,780 balance of an account owed by a customer, Wil Treadwell. Journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used. Next