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Concept explainers
(a)
Allowance method
It is a method for accounting
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 $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.
(b)
To reinstate: The account of Person RE 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. July 9. Received RO.1,200 from Abdullah and wrote off the remainder owed of RO.3,900 as uncollectible. Oct. 11. Reinstated the account of Abdullah and received RO3,900 cash in full payment.arrow_forwardJournalize 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 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 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: 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_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_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 $2,900 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_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
- Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $1,970 from Ian Kearns and wrote off the remainder owed of $1,360 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20. Reinstated the account of Ian Kearns and received $1,360 cash in full payment. Reinstate Collectionarrow_forwardAllowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Mar. 17. Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29. Reinstated the account of Shawn McNeely and received $1,000 cash in full payment. July 29 July 29arrow_forwardAllowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables. Mar. 17: Received $2,570 from Ian Kearns and wrote off the remainder owed of $3,910 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of Ian Kearns and received $3,910 cash in full payment. July 29 18 July 29arrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage