Question

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

April 1 Sold merchandise on account to Jim Dobbs, $7,770. The cost of the merchandise is $3,885.

April 1
April 1

June 10 Received $2,590 from Jim Dobbs and wrote off the remainder owed of $5,180. If an amount box does not require an entry, leave it blank or enter "0".

June 10

Oct. 11 Reinstated the account of Jim Dobbs and received $5,180 cash in full payment.

Oct. 11
Oct. 11

Answer 1

Date	Particulars	Debit ($)	Credit ($)
April 1	Cost of merchandise sold	3885
	To Merchandise inventory		3885
	(Being cost of merchandise sold recorded)
April 1	Accounts Receivable - Jim Dobbs	7770
	To Sales		7770
	(Being goods merchandise sold to Jim Dobbs)
June 10	Cash	2590
	Allowance for doubtful Accounts	5180
	To Accounts receivable - Jim Dobbs		7770
	(Being part payment received from Jim Dobbs and remaining unpaid value wrote off)
Oct 11	Accounts receivable - Jim Dobbs	5180
	To Allowance for Doubtful accounts		5180
	(Being Previously written off receivable reinstated)
Oct 11	Cash	5180
	To Accounts Receivable - Jim Dobbs		5180
	(Being Account with Jim dobbs settled and full payment received)

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