Allowance Method

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

Oct. 2. Received $2,450 from Paula Spitler and wrote off the remainder owed of $3,580 as uncollectible. If an amount box does not require an entry, leave it blank.

Oct. 2	Cash
	Allowance for Doubtful Accounts
	Accounts Receivable-Paula Spitler

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When a customer account is identified as uncollectible, it is written-off against the allowance account.

Dec. 20. Reinstated the account of Paula Spitler and received $3,580 cash in full payment.

Reinstate
Collection