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26 October, 04:51

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

April 1 Sold merchandise on account to Jim Dobbs, $6,800. The cost of the merchandise is $6,700.

June 10 Received $1,400 from Jim Dobbs and wrote off the remainder owed of $5,400.

Oct. 11 Reinstated the account of Jim Dobbs and received $5,400 cash in full payment.

April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400.

June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.

Oct. 11 Reinstated the account of Jim Dobbs for and received cash in full payment.

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  1. 26 October, 08:03
    0
    See the journal entries with narration below.

    Explanation:

    a. For the first set of transactions, the journal entries will look as follows:

    Date Details Dr ($) Cr ($)

    April 1 Account Receivable - J. Dobbs 6,800

    Sales 6,800

    To record sale of merchandising on account to Jim Dobbs.

    April 1 Cost of goods sold 6,700

    Inventory 6,700

    To record cost of goods sold to Jim Dobbs.

    June 10 Cash 1,400

    Allow. for doubtful acct. (B. debt) 5,400

    Account Receivable - J. Dobss 6.800

    To record cash receipt J. Dobbs and amount written off.

    Oct. 11 Account Receivable - J. Dobbs 5,400

    Allowance for doubtful accounts 5,400

    To reinstate Jim Dobbs' account receivable.

    Oct. 11 Cash 5,400

    Account Receivable 5,400

    To record cash received from Jim Dobbs' in full.

    b. For the first set of transactions, the journal entries will look as follows:

    Date Details Dr ($) Cr ($)

    April 1 Account Receivable - J. Dobbs 7,200

    Sales 7,200

    To record sale of merchandising on account to Jim Dobbs.

    April 1 Cost of goods sold 5,400

    Inventory 5,400

    To record cost of goods sold to Jim Dobbs.

    June 10 Cash (1/3 * 7,200) 2,400

    Allow. for doubtful acct. (B. debt) 4,800

    Account Receivable - J. Dobss 7,200

    To record cash receipt J. Dobbs and amount written off.

    Oct. 11 Account Receivable - J. Dobbs 4,800

    Allowance for doubtful accounts 4,800

    To reinstate Jim Dobbs' account receivable.

    Oct. 11 Cash 4,800

    Account Receivable 4,800

    To record cash received from Jim Dobbs' in full.
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