Question

Allowance Method

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

Mar. 17: Received $2,560 from Paula Spitler and wrote off the remainder owed of $2,460 as uncollectible. If an amount box does not require an entry, leave it blank.

Mar. 17

July 29: Reinstated the account of Paula Spitler and received $2,460 cash in full payment.

Reinstate
Collection

Answer 1

Mar-17	Cash	$ 2,560
	Allowance for doubtful accounts	$ 2,460
	Accounts receivable		$ 5,020
	(To record receipt of receivables after write off)
Jul-29	Accounts receivable	$ 2,460
	Allowance for doubtful accounts		$ 2,460
	(To record reinstate an account previously written off)
Jul-29	Cash	$ 2,460
	Accounts receivable		$ 2,460
	(To record previously written off amount collected)

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