FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Entries for uncollectible receivables using allowance method
Journalize the following transactions in the accounts for Sedona interiors company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables.
May 1st sold merchandise on account to Beijing palace company, $17,700. The cost of the merchandise sold was $12,700.
August 30th received $3,700 from Beijing palace company and wrote off the remainder road on the sale of May 1st as uncollectible.
December 8th reinstated the account of Beijing palace company that had been written off on August 30th and received 14,000 cash and full payment.
for a compound transaction, if an amount box does not require an entry, leave it blank.
May 1st sale______
______
May first cost _______
_______
August 30th ________
________
________
December 8th reinstated _________
__________
December 8th collection ___________
___________
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Under the allowance method, uncollectible accounts are debited to the Allowance for doubtful accounts / uncollectible accounts.
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