PE 9-2B Allowance method

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

July 7. Received $500 from Betty Williams and wrote off the remainder owed of
$2,000 as uncollectible.
Nov. 13. Reinstated the account of Betty Williams and received $2,000 cash in full payment.

Answer:
July 7
Cash.................................................................... 500  
Allowance for Doubtful Accounts.................... 2,000  
                                Accounts Receivable—Betty Williams.......  2,500  

Nov. 13
Accounts Receivable—Betty Williams ............ 2,000  
                               Allowance for Doubtful Accounts...............  2,000  

          13
Cash.................................................................... 2,000  
                                     Accounts Receivable—Betty Williams..  2,000

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