July 3. Wrote off the remaining $34,010 owed on account as uncollectible. Oct. 8. Reinstated the account that had been written off on July 3. (Do not record the collection of cash yet.) Oct. 8 Received $34,010 cash in full payment for the reinstated account.
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:
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July 3. Received $23,000 on an account.
July 3. Wrote off the remaining $34,010 owed on account as uncollectible.
Oct. 8. Reinstated the account that had been written off on July 3. (Do not record the collection of cash yet.)
Oct. 8 Received $34,010 cash in full payment for the reinstated account.
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