Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Experience the convenience of finding accurate answers to your questions from knowledgeable experts 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 trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.