Answered

Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Discover detailed solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.

April. 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of goods sold 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 and received cash in full payment.

Sagot :

The journal entry for the transactions will be:

1st April

Debit Account receivables $7200

Credit Sales $7200

(To record sales)

Debit Cost of goods sold $5400

Credit Inventory $5400

(To record cost of goods sold)

10th June

Debit Cash $2400

Credit Account receivable $2400

(To record cash received from customer)

Debit Allowance for uncollectible items $4800

Credit Account receivable $4800

(To record write-off)

11th October

Debit Account receivable $4800

Credit Allowance for uncollectible items $4800

( To record reinstatement of account)

Debit Cash $4800

Credit Account receivable $4800

( To record full cash gotten from customer)

The account receivable on 10th June was calculated as:

= (1/3 × $7200) = $2400

Learn more about journal entry on:

https://brainly.com/question/8913038

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.