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, $9,900 The cost of goods sold was $7,100 Sept 30 Received $2,000 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 $7,900 cash in full payment If an amount box does not require an entry, leave it blank Date Account Debit Credit May 24 sale Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsCashSales Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsCashSales May 24 cost Accounts Payable Old Town CafeAllowance for Doubtful AccountsCost of Goods SoldInventorySales Accounts Payable Old Town CafeAllowance for Doubtful AccountsCost of Goods SoldInventorySales Sept 30 Accounts Payable Old Town CafeAccounts Receivable Old Town CafeBad Debt ExpenseCashCost of Goods Sold Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsCost of Goods SoldSales Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCash Dec 7 reinstate Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCost of Goods Sold Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCost of Goods Sold Dec 7 collection Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCash Accounts Payable Old Town CafeAccounts Receivable Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCash

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Posted on Aug 05, 2024

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, $9,900. The cost of goods sold was $7,100.
Sept. 30.	Received $2,000 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 $7,900 cash in full payment.

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

Date	Account	Debit	Credit
May 24-sale	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsCashSales
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsCashSales
May 24-cost	Accounts Payable-Old Town CafeAllowance for Doubtful AccountsCost of Goods SoldInventorySales
	Accounts Payable-Old Town CafeAllowance for Doubtful AccountsCost of Goods SoldInventorySales
Sept. 30	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeBad Debt ExpenseCashCost of Goods Sold
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsCost of Goods SoldSales
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCash
Dec. 7-reinstate	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCost of Goods Sold
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCost of Goods Sold
Dec. 7-collection	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCash
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCash