Entries for Uncollectible Receivables, using Allowance Method Journalize the following transactions in the accounts of...
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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 allowance method of accounting for uncollectible receivables: a May 24 Sold merchandise on account to Old Town Cafe, $17,600. The cost of goods sold was $12,700. Sept. 30 Received $4,900 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 $12,700 cash in full payment. If an amount box does not require an entry, leave it blank. May 24-sale Accounts Receivable-Old Town Cafe 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 II II III Dec. 7-collection Cash Accounts Receivable-Old Town Cafe
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