Question

**11 spots in the journal

Using the allowance method of accounting for uncollectible receivables.

Apr. 1	Sold merchandise on account to Jim Dobbs, $8,700. The cost of the merchandise is $6,000.
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.

Required:

Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Alan Albertson 122 Accounts Receivable-Jim Dobbs 123 Accounts Receivable-John Groves 124 Accounts Receivable-Jan Lehn 125 Accounts Receivable-Jacob Marley 126 Accounts Receivable-Mr.Potts 127 Accounts Receivable-Chad Thomas 128 Accounts Receivable-Andrew Warren 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Supplies 151 Prepaid Insurance 181 Land 191 Equipment 192 Accumulated Depreciation LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue

Answer 1

Solution:

Journal Entries
Date	Particulars	Debit	Credit
1-Apr	Accounts receivables - Jim Dobbs Dr	$8,700.00
	To Sales revenue		$8,700.00
	(To record sales on account)
1-Apr	Cost of goods sold Dr	$6,000.00
	To Merchandise Inventory		$6,000.00
	(To record cost of goods sold)
10-Jun	Cash Dr	$2,900.00
	Allowance for doubtful accounts	$5,800.00
	To Accounts receivables - Jim Dobbs		$8,700.00
	(To record partial collection on account and write off of remainders)
11-Oct	Accounts receivables - Jim Dobbs Dr	$5,800.00
	To Allowance for doubtful accounts		$5,800.00
	(To reinstate accounts receivables)
11-Oct	Cash Dr	$5,800.00
	To Accounts receivables - Jim Dobbs		$5,800.00
	(To record collection from customers)