Question

Uncollectible Receivables, Using Allowance Method

Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Kitchen Depot Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

July 3. Received $15,500 on an account.

Statement of Cash Flows	Balance Sheet
	Assets			=	Liabilities	+	Stockholders' Equity
		+		=		+
July. 3.
Statement of Cash Flows								Income Statement

July 3. Wrote off the remaining $49,755 owed on account as uncollectible.

Statement of Cash Flows	Balance Sheet
	Assets			=	Liabilities	+	Stockholders' Equity
		-		=		+
July. 3.
Statement of Cash Flows								Income Statement

Oct. 8. Reinstated the account that had been written off on July 3. (Do not record the collection of cash yet.)

Statement of Cash Flows	Balance Sheet
	Assets			=	Liabilities	+	Stockholders' Equity
		-		=		+
Oct. 8.
Statement of Cash Flows								Income Statement

Oct. 8 Received $49,755 cash in full payment for the reinstated account.

Statement of Cash Flows	Balance Sheet
	Assets			=	Liabilities	+	Stockholders' Equity
		+		=		+
Oct. 8.
Statement of Cash Flows								Income Statement

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Kitchen Depot Company
Date	Assets	Amount $	Liabilities	Amount $	Stockholders' Equity	Amount $	Statement of Cash Flows
3-Jul	Cash	15,500.00					Operating Activity
	Accounts Receivable	(15,500.00)
3-Jul	Accounts Receivable	(49,755.00)
	Allowance for doubtful accounts	49,755.00
8-Oct	Accounts Receivable	49,755.00
	Allowance for doubtful accounts	(49,755.00)
8-Oct	Cash	49,755.00					Operating Activity
	Accounts Receivable	(49,755.00)