Question

Example Exercise 9-2 Allowance Method Journalize the following transactions using the allowance method of accounting for uncollectible receivables July 9 Received $1,200 from Jay Burke and wrote off the remainder owed of $3,900 as uncollectible. Oct. 11 Reinstated the account of Jay Burke and received $3,900 cash in full payment. 9-28

Answer 1

SOLUTION

Date	Accounts titles and Explanation	Debit ($)	Credit ($)
July 9	Cash	1,200
	Bad Debts Expense	3,900
	Accounts Receivable		5,100
	(Being the cash received and bad debt written off recorded)
Oct.11	Accounts Receivable	3,900
	Bad Debt Expense		3,900
	(Being written off amount reinstated)
	Cash	3,900
	Accounts Receivable		3,900
	(Being amount received and recorded)