Allowance Method

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables:

July 9. Received $1,200 from Jay Burke and wrote off the remainder owed of $3,900 as uncollectible.

Oct. 11. Reinstated the account of Jay Burke and received $3,900 cash in full payment.

Question

Allowance Method

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables:

July 9. Received $1,200 from Jay Burke and wrote off the remainder owed of $3,900 as uncollectible.

Oct. 11. Reinstated the account of Jay Burke and received $3,900 cash in full payment.

Accepted Answer

July 9 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

Allowance for Doubtful Accounts . . . . . . . . . . . . . . . . . . . . . . . . . 3,900

Accounts Receivable—Jay Burke . . . . . . . . . . . . . . . . . . . . 5,100

Oct. 11 Accounts Receivable—Jay Burke . . . . . . . . . . . . . . . . . . . . . . . . . 3,900

Allowance for Doubtful Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900

11 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900

Accounts Receivable—Jay Burke . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900

Question 9.2: Allowance Method Journalize the following transactions, usin...