Question

Journalize the following transactions using the allowance method of accounting for uncollectible receivables. April 1 Sold merchandise on account to Jim Dobbs, $9,000. The cost of the merchandise is $7,200. If an amount box does not require an entry, leave it blank. April 1 April 1 June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. If an amount box does not require an entry, leave it blank. June 10 Oct. 11 Reinstated the account of Jim Dobbs and received $6,000 cash in full payment. If an amount box does not require an entry, leave it blank. Oct. 11 Oct. 11

Answer 1

Date	Account Titles and Explanation	Debit	Credit
April 1	Accounts Receivable	$9,000
	Sales		$9,000
	Cost of Goods Sold	$7,200
	Merchandise Inventory		$7,200
June 10	Cash	$3,000
	Accounts Receivable		$3,000
	Allowance for uncollectible Accounts	$6,000
	Accounts Receivable		$6,000
Oct 11	Accounts Receivable	$6,000
	Allowance for uncollectible Accounts		$6,000
	Cash	$6,000
	Accounts Receivable		$6,000