Question

1. Entries for Uncollectible All money claims against other entities, including people, business firms, and other organizations.Receivables, using The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write-off.Allowance Method

   Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

   May 24	Sold merchandise on account to Old Town Cafe, $18,600. The cost of goods sold was $13,400.
   Sept. 30	Received $4,500 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible.
   Dec. 7	Reinstated the account of Old Town Cafe that had been written off on September 30 and received $14,100 cash in full payment.

   If an amount box does not require an entry, leave it blank.

2.    Options    Number    Number

3. May 24-sale	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Cash Inventory Sales
   	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Sales
   May 24-cost	Accounts Payable-Old Town Cafe Allowance for Doubtful Accounts Cash Cost of Goods Sold Inventory Sales
   	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Cash Cost of Goods Sold Inventory
   Sept. 30	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Bad Debt Expense Cash Cost of Goods Sold Inventory
   	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cost of Goods Sold Sales
   	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold
   Dec. 7-reinstate	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold
   	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold
   Dec. 7-collection	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Sales
   	Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Bad Debt Expense Cash Inventory

Answer 1

Date & Transaction	Account Titles	Debit $	Credit $
May,24- Sales	Accounts Receivable-Old Town Cafe	18,600
	Sales		18,600
May,24- Cost	Cost of goods sold	13,400
	Inventory		13,400
Sept.30	Cash	4,500
	Allowance for Doubtful Accounts	14,100
	Accounts Receivable-Old Town Cafe		18,600
Dec-7 -reinstate	Accounts Receivable-Old Town Cafe	14,100
	Allowance for Doubtful Accounts		14,100
Dec-7 -Collection	Cash	14,100
	Accounts Receivable-Old Town Cafe		14,100