Concept explainers
(a)
Allowance method
It is a method for accounting
Accounts receivable:
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
Write-off:
Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.
To journalize: The collection of $1,200 cash and write-off of Person M’s $4,000 of remaining uncollectible accounts, using allowance method.
(b)
To reinstate: The account of Person M and record the collection of cash on account.
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Chapter 8 Solutions
Financial & Managerial Accounting
- Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $3,240 from Keith MacPhearson and wrote off the remainder owed of $7,230 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20. Reinstated the account of Keith MacPhearson and received $7,230 cash in full payment. If an amount box does not require an entry, leave it blank. Reinstate Collectionarrow_forwardJournalize the following transactions using the allowance method of accounting foruncollectible receivables:Sep 1. Received $600 from Jane and wrote off the remainder owed of $1350 as uncollectible.Nov15.Reinstated the account Jane that had been written off on Sep 1 and received $1350 cash in full payment.arrow_forwardJournalize the following transactions, using the direct write-off method of accounting for uncollectible receivables:Oct. 2. Received $600 from Rachel Elpel and wrote off the remainder owed of $1,350 as uncollectible.Dec. 20. Reinstated the account of Rachel Elpel and received $1,350 cash in full payment.arrow_forward
- Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: March 17-received $275 from Shawn McNeeley and wrote off the remainder owed of $1,000 as uncollectible. IF an amount box does not require and entry, leave it blank. July 29-reinstated the amount of Shawn McNeely and received $1,000 cash in full payment.arrow_forwardJournalize the following transactions, using the direct write-off method of accounting for uncollectible receivables:Apr. 15. Received $800 from Jean Tooley and wrote off the remainder owed of $1,200 as uncollectible.Aug. 7. Reinstated the account of Jean Tooley and received $1,200 cash in full payment.arrow_forwardJournalize the following transactions, using the allowance method of accounting for uncollectible receivables. Mar. 17: Received $3,220 from Paula Spitler and wrote off the remainder owed of $1,930 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 Cash fill in the blank 035d8afee01bfea_2 fill in the blank 035d8afee01bfea_3 Allowance for Doubtful Accounts fill in the blank 035d8afee01bfea_5 fill in the blank 035d8afee01bfea_6 Accounts Receivable-Paula Spitler fill in the blank 035d8afee01bfea_8 fill in the blank 035d8afee01bfea_9 July 29: Reinstated the account of Paula Spitler and received $1,930 cash in full payment. July 29 fill in the blank e6591afdffdafad_2 fill in the blank e6591afdffdafad_3 fill in the blank e6591afdffdafad_5 fill in the blank e6591afdffdafad_6 July 29 fill in the blank e6591afdffdafad_8 fill in the blank e6591afdffdafad_9 fill in the blank e6591afdffdafad_11 fill in the…arrow_forward
- Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $1,140 from Elita Ramirez and wrote off the remainder owed of $2,570 as uncollectible. If an amount box does not reguire an entry, leave it blank. Oct. 2 Accounts Payable-Elita Ramirez lita Ramirez and received $2,570 cash in full payment. If an amount box does not require an entry, leave it blank. Accounts Receivable-Elita Ramirez Allowance for Doubtful Accounts Bad Debt Expense Casharrow_forwardAllowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $2,040 from William Pruitt and wrote off the remainder owed of $3,040 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20. Reinstated the account of William Pruitt and received $3,040 cash in full payment. If an amount box does not require an entry, leave it blank. Reinstate Collectionarrow_forwardAllowance method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables. Mar. 17: Received $3,400 from Shawn McNeely and wrote off the remainder owed of $6,050 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29 000 July 29: Reinstated the account of Shawn McNeely and received $6,050 cash in full payment. July 29 000 00 00 00 00arrow_forward
- Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $2,900 from Keith MacPhearson and wrote off the remainder owed of $3,740 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20. Reinstated the account of Keith MacPhearson and received $3,740 cash in full payment. Reinstate Collectionarrow_forwardMar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible. July 29 Reinstated the account of Shawn McNeely and received $1,000 cash in full payment. Journalize the above transactions, using the allowance method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardJournalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,730 from William Pruitt and wrote off the remainder owed of $5,650 as uncollectible. If an amount box does not reguire an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of William Pruitt and received $5,650 cash in full payment. If an amount box does not require an entry, leave it blank. Dec. 20-Reinstate Dec. 20-Collectionarrow_forward