Question

Using the Allowance Method – prepare the necessary journal entries

a) Write off uncollectible receivables in the amount of $1000.

b) $1000 that was previously written off – has been collected.

Answer 1

Journal

Date	Account Title and Explanation	Debit	Credit
a	Allowance for doubtful accounts	1,000
	Accounts receivable		1,000
	(To record write off of accounts receivable)
b	Accounts receivable	1,000
	Allowance for doubtful accounts		1,000
	(To reinstate accounts receivable)
	Cash	1,000
	Accounts receivable		1,000
	(To record cash collection from accounts receivable)

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