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Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct....

Allowance Method

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

Oct. 2. Received $2,450 from Paula Spitler and wrote off the remainder owed of $3,580 as uncollectible. If an amount box does not require an entry, leave it blank.

Oct. 2 Cash
Allowance for Doubtful Accounts
Accounts Receivable-Paula Spitler

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When a customer account is identified as uncollectible, it is written-off against the allowance account.

Dec. 20. Reinstated the account of Paula Spitler and received $3,580 cash in full payment.

Reinstate
Collection

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Expert Solution

Journal Entries under allowance method for uncollectible receivables
Journal Entries
Date Particulars Debit Credit
Oct-02 Cash A/C $                         2,450.00
Allowance for Doubtful Accounts $                         3,580.00
To Account Receivable-Paula Spliter $                 6,030.00
(Being cash received from debtor & remaining balance written off)
Dec-20 Account Receivable-Paula Spliter $                         3,580.00
To Allowance for Doubtful Accounts $                 3,580.00
(Being reinstatement of account receivable done as previouly written off)
Dec-20 Cash A/C $                         3,580.00
To Account Receivable-Paula Spliter $                 3,580.00
(Being cash received from debtor)
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ekkarill92 answered 1 year ago
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