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, $15,700. The cost of goods sold was $11,300. Sept. 30   Received $3,500 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 $12,200 cash in full payment. If an amount box does not require an entry, leave it blank

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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, $15,700. The cost of goods sold was $11,300.
Sept. 30   Received $3,500 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 $12,200 cash in full payment.

If an amount box does not require an entry, leave it blank.

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