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.

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.