PE 9-2A Allowance method

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

Jan. 17. Received $250 from Ian Kearns and wrote off the remainder owed of $750 as
uncollectible.
Apr. 6. Reinstated the account of Ian Kearns and received $750 cash in full payment.

Answer:
Jan. 17 Cash.................................................................... 250  
Allowance for Doubtful Accounts....................               750  
                                      Accounts Receivable—Ian Kearns.............  1,000  

Apr. 6
Accounts Receivable—Ian Kearns................... 750  
                                    Allowance for Doubtful Accounts...............  750  
         6
Cash.................................................................... 750  
                                      Accounts Receivable—Ian Kearns.............  750

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