Entries for Uncollectible Receivables, using Allowance Method: Journalize the following transactions in the accounts of...
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Accounting
Entries for Uncollectible Receivables, using Allowance Method:
Journalize the following transactions in the accounts of Sedona Interiors Company, a Restaurant Supply Company that uses the allowance method of accounting for uncollectible receivables:
May 1.
Sold merchandise on account to Palace Co., $17,300. The cost of the merchandise sold was $12,500.
Aug. 30.
Received $3,800 from Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible.
Dec. 8.
Reinstated the account of Palace Co. that had been written off on August 30 and received $13,500 cash in full payment.
For a compound transaction, if an amount box does not require an entry, leave it blank.
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