Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 8, Problem 8.4EX
Entries for uncollectible receivables, using allowance method
Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:
| May | 24 | Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000. |
| Sept. | 30 | Received $6,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. |
| Dec. | 7 | Reinstated the account of Old Town Cafe that had been written off on September 30 and received $12,450 cash in full payment. |
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Chapter 8 Solutions
Corporate Financial Accounting
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