Entries for Uncollectible All money claims against other entities, including people, business firms, and other organizations Receivables, using The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write off 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 receivables May 24 Sold merchandise on account to Old Town Cafe, $18,600 The cost of goods sold was $13,400 Sept 30 Received $4,500 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 $14,100 cash in full payment If an amount box does not require an entry, leave it blank Options Number Number May 24 sale Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Cash Inventory Sales Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Sales May 24 cost Accounts Payable Old Town Cafe Allowance for Doubtful Accounts Cash Cost of Goods Sold Inventory Sales Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Cash Cost of Goods Sold Inventory Sept 30 Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Bad Debt Expense Cash Cost of Goods Sold Inventory Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cost of Goods Sold Sales Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold Dec 7 reinstate Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold Dec 7 collection Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Sales Accounts Payable Old Town Cafe Accounts Receivable Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Inventory

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 19, 2024

Entries for Uncollectible All money claims against other entities, including people, business firms, and other organizations.Receivables, using The method of accounting for uncollectible accounts that

Entries for Uncollectible All money claims against other entities, including people, business firms, and other organizations.Receivables, using The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write-off.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 receivables:

May 24	Sold merchandise on account to Old Town Cafe, $18,600. The cost of goods sold was $13,400.
Sept. 30	Received $4,500 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 $14,100 cash in full payment.

If an amount box does not require an entry, leave it blank.

Options Number Number

May 24-sale	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Cash Inventory Sales
	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Sales
May 24-cost	Accounts Payable-Old Town Cafe Allowance for Doubtful Accounts Cash Cost of Goods Sold Inventory Sales
	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Cash Cost of Goods Sold Inventory
Sept. 30	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Bad Debt Expense Cash Cost of Goods Sold Inventory
	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cost of Goods Sold Sales
	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold
Dec. 7-reinstate	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold
	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold
Dec. 7-collection	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Sales
	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Inventory