Question
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:
May 24 Sold merchandise on account to Old Town Cafe, $10,000. The cost of goods sold was $7,200.
Sept. 30 Received $2,700 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 $7,300 cash in full payment.
If an amount box does not require an entry, leave it blank.
May 24- sale Accounts Receivable-Old Town Caf
Sales
May 24-cost Cost of Goods Sold
Inventory
Sept. 30 Cash
Allowance for Doubtful Accounts
Accounts Receivable-Old Town Cafe
Dec. 7-reinstate Accounts Receivable-Old Town Cafe
Allowance for Doubtful Accounts
Dec. 7-collection Cash
Accounts Receivable-Old Town Cafe
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