EX 9-4 Entries for uncollectible receivables, using allowance method

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

Feb. 11. Sold merchandise on account to Dakota Co., $29,000. The cost of the merchandise
sold was $17,400.
Apr. 15. Received $7,500 from Dakota Co. and wrote off the remainder owed on the
sale of February 11 as uncollectible.
Sept. 3. Reinstated the account of Dakota Co. that had been written off on April 15
and received $21,500 cash in full payment.

Answer:
Feb. 11
Accounts Receivable—Dakota Co. ................. 29,000  
                      Sales..............................................................  29,000  

       11
Cost of Merchandise Sold ................................ 17,400  
                       Merchandise Inventory................................  17,400  

Apr. 15
Cash.................................................................... 7,500  
Allowance for Doubtful Accounts.................... 21,500  
                         Accounts Receivable—Dakota Co. ............  29,000  

Sept. 3
Accounts Receivable—Dakota Co. ................. 21,500  
                        Allowance for Doubtful Accounts...............  21,500  
         3
Cash.................................................................... 21,500  
                         Accounts Receivable—Dakota Co. ............  21,500

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