**Educational Resource: Accounting for Uncollectible Receivables Using Allowance Method****Overview:**This screen provides a practical exercise involving journal entries for uncollectible receivables at Zippy Interiors Company, a restaurant supply company. The exercise demonstrates the allowance method for accounting for uncollectible receivables.**Exercise Details:***Transactions:*1. **May 24 - Sale:** - Sold merchandise on account to Old Town Cafe, amounting to $10,200. - The cost of goods sold (COGS) was $7,300. **Journal Entries:** - Accounts Receivable—Old Town Cafe: Debit $10,200 - Sales: Credit $10,200 - Cost of Goods Sold: Debit $7,300 - Inventory: Credit $7,3002. **September 30:** - Recorded $3,000 received from Old Town Cafe and deemed the remaining balance from May 24 as uncollectible. **Journal Entries:** - Cash: Debit $3,000 - Allowance for Doubtful Accounts: Debit Required Amount - Accounts Receivable—Old Town Cafe: Credit $10,200 (Remaining Balance Written Off)3. **December 7 - Reinstatement:** - Reinstated the previously written-off account for Old Town Cafe after receiving a full payment of $7,200. **Journal Entries:** - Accounts Receivable—Old Town Cafe: Debit $7,200 - Allowance for Doubtful Accounts: Credit Required Amount - Cash: Debit $7,200 - Accounts Receivable—Old Town Cafe: Credit $7,200**Instructions:**Leave entry boxes blank if an entry is not required for the transaction.**Notes:**- The exercise includes interactive components where users can input amounts in the provided fields.- A “Check My Work” feature is available for verification of answers.This exercise is part of a series designed to build skills in managing and recording financial transactions, specifically focusing on handling uncollectible accounts through the allowance method. ## Transcription**Topic: Accounting for Uncollectible Accounts**### Entries:- **May 24 - Cost of Goods Sold** - **Debit** - **Credit**- **Inventory** - **Debit** - **Credit**- **Sept. 30 - Cash** - **Debit** - **Credit**- **Allowance for Doubtful Accounts** - **Debit** - **Credit**- **Accounts Receivable - Old Town Cafe** - **Debit** - **Credit**- **Dec. 7 - Reinstate: Accounts Receivable - Old Town Cafe** - **Debit** - **Credit**- **Allowance for Doubtful Accounts** - **Debit** - **Credit**- **Dec. 7 - Collection: Cash** - **Debit** - **Credit**- **Accounts Receivable - Old Town Cafe** - **Debit** - **Credit**### Feedback:- **Check My Work**: - When a customer's account is identified as uncollectible, it is written off against the allowance account. - In cases where an account receivable that has been written off is later collected, the account is reinstated. Then record the payment for the account.### Navigation:- Progress: 48 items- Control Buttons: - **Check My Work** - **Previous** - **Next**This educational material guides students through the process of handling uncollectible accounts, emphasizing the necessary journal entries and the reinstatement process of previously written-off accounts.

Journal entry shows the recording of each transaction in the books of accounts of the firm. Every…

Entries for Uncollectible Recelvables, using Alowance Method Journalze the folloning transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allonance method of accounting for uncolectible recelvables: May 24 Sold merchandise on account to Old Town Cafe, S0,200. The cost of goods sold was $7,300. Sept. 30 Recelved s3,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and recelved $7,200 cash in full payment. an amount box does not require an entry, leave k blank.

Entries for Uncollectible Recelvables, using Alowance Method Journalze the folloning transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allonance method of accounting for uncolectible recelvables: May 24 Sold merchandise on account to Old Town Cafe, S0,200. The cost of goods sold was $7,300. Sept. 30 Recelved s3,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and recelved $7,200 cash in full payment. an amount box does not require an entry, leave k blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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> Journalize the following transactions using the direct write-off method of accounting for Apr. 1 Sold merchandise on account to Jim Dobbs, $6,000. The cost of goods sold is $4,000. June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment. If an amount box does not require an entry, leave it blank. Apr. 1 Apr. 1 June 10 Oct. 11 ctible receivables. Oct. 11 ?
Instructions May Sept Dec. 24 Sold merchandise on account to Old Town Cafe $39,560. The cost of the goods sold was $24,540. Received $11,930 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible 30 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $27,630 cash in full payment. Journalize the above transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables Refer to the Chart of Accounts for exact wording of account t untitles
Entries for uncollectible receivables, using allowance method Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: May 24. Sold merchandise on account to Old Town Cafe, $11,000. The cost of goods sold was $7,900. Sept. 30. Received $2,200 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Dec. 7. Reinstated the account of Old Town Cafe that had been written off on September 30 and received $8,800 cash in full payment. If an amount box does not require an entry, leave it blank. May 24-sale May 24-cost Sept. 30 Dec. 7-reinstate Dec. 7-collection 17 00 00 000 00 00 00 00 00 00 00
The question is on the photo. Thanks!
Entries for Uncollectible Receivables, using Allowance Method Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: May 24 Sold merchandise on account to Old Town Cafe, $19,300. The cost of goods sold was $13,900. Sept. 30 Received $5,400 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $13,900 cash in full payment. If an amount box does not require an entry, leave it blank. May 24-sale May 24-cost Accounting numeric field Sept. 30 Dec. 7-reinstate Dec. 7-collection
Hi can you post this transaction for me please
Journalize the following transactions using the allowance method of accounting for uncollectible receivables. Apr. 1 Sold merchandise on account to Jim Dobbs, $7,770. The cost of the merchandise is $3,885. If an amount box does not require an entry, leave it blank. Apr. 1 fill in the blank 95f337068076f92_2 fill in the blank 95f337068076f92_3 fill in the blank 95f337068076f92_5 fill in the blank 95f337068076f92_6 Apr. 1 fill in the blank 95f337068076f92_8 fill in the blank 95f337068076f92_9 fill in the blank 95f337068076f92_11 fill in the blank 95f337068076f92_12 June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. If an amount box does not require an entry, leave it blank. June 10 fill in the blank becc7c06d02c06d_2 fill in the blank becc7c06d02c06d_3 fill in the blank becc7c06d02c06d_5 fill in the blank becc7c06d02c06d_6 fill in the blank becc7c06d02c06d_8 fill in the blank…
Purchase-related transactionsStylon Co., a women's clothing store, purchased $48,000 of merchandisefrom a supplier on account, terms FOB destination, 2/10, n/30. Stylon returned merchandise with an Invoice amount of $7,500, receiving acredit memo. Journalize Stylon's entries to record (a) the purchase, (b)the merchandise return, (c) the payment within the discount period of10 days, and (d) the payment beyond the discount period of 10 days.
Journalize the following transactions in the accounts of Arrow Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 19. Sold merchandise on account to Dr. Sinclair Welby, $38,700. The cost of the merchandise sold was $20,900. July 7. Received $8,100 from Dr. Sinclair Welby and wrote off the remainder owed on the sale of January 19 as uncollectible. Nov. 2. Reinstated the account of Dr. Sinclair Welby that had been written off on July 7 and received $30,600 cash in full payment. If an amount box does not require an entry, leave it blank. Jan. 19-sale - Select - - Select - - Select - - Select - Jan. 19-cost - Select - - Select - - Select - - Select - July 7 - Select - - Select - - Select - - Select - - Select - - Select - Nov. 2-reinstate - Select - - Select - - Select - - Select - Nov. 2-collection - Select - - Select -…
Journalize the transactions for Williams Market during December of the current year. Use page 12 of a general journal. Journalize the January transaction on page 16 of a cash payments journal. Source documents are abbreviated as follows: memorandum, M; debit memorandum, DM; credit memorandum, CM; sales invoice, S. No C is required in the Ck. No. column.
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May 24 Sold merchandise on account to Old Town Cafe, $36,010. The cost of goods sold was $22,050. Sept 30 Received $11,500 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Reinstated the account of Old Town Cafe that had been written off on September 30 and received $24,510 cash ir full payment. Dec. 7 Journalize the above transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables