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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:
May 24 | Sold merchandise on account to Old Town Cafe $10,400. The cost of goods sold was $7,500. |
Sept. 30 | Received $2,600 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 $7,800 cash in full payment. |
For a compound transaction, if an amount box does not require an entry, leave it blank. May 24-sale May 24-cost Sept. 30 Dec. 7-reinstated Dec. 7-collection
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