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Entries for uncollectible receivables, using allowance method Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the
Entries for uncollectible receivables, using 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:
Date | Transaction |
---|---|
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. |
If an amount box does not require an entry, leave it blank.
Date | Account | Debit | Credit |
---|---|---|---|
May 24-sale | |||
May 24-cost | |||
Sept. 30 | |||
Dec. 7-reinstate | |||
Dec. 7-collection | |||
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