Uncollectible Receivables, Using Allowance Method Illustrate the effects on the accounts and financial statements of...
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Uncollectible Receivables, Using Allowance Method Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Kitchen Depot Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: If no account or activity is affected, type "No effect". Enter account decreases and cash outflows as negative amounts. 1. July 3. Received $2,500 on an account Income Statement 2. July 3. Wrote off the remaining $11,000 owed on account as uncollectible. Accounts Assets Balance Sheet Accounts July, 3. Statement of Cash Flows Income Statement 3. Oct. 8. Reinstated the account that had been written off on July 3. (Do not record the collection of cash yet.) Statement of Cash Flows Income Statement 4. Oct. 8 Received $11,000 cash in full payment for the reinstated account
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