Allowance Method

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables:

Oct. 2. Received $2,260 from William Pruitt and wrote off the remainder owed of $2,940 as uncollectible. If an amount box does not require an entry, leave it blank.

Oct. 2

Dec. 20. Reinstated the account of William Pruitt and received $2,940 cash in full payment.

Reinstate
Collection