Assuming that the allowance method is being used, prepare journal entries to rec
ID: 2445635 • Letter: A
Question
Assuming that the allowance method is being used, prepare journal entries to record the following transactions. Omit explanations.
Mar. 15 Sold merchandise to Foster for $12,000 on account.
Apr. 15 Received $6,000 from Foster.
Aug. 15 Wrote off Foster's account as uncollectible.
Nov. 15 Unexpectedly received payment in full from Foster.
GENERAL JOURNAL
Date
Description
Post.
Ref.
Debit
Credit
Mar.
15
Accounts Receivable
$
Sales
$
Apr.
15
Cash
$
Accounts Receivable
$
Aug.
15
Allowance for Uncollectible Accounts
$
Accounts Receivable
$
Nov.
15
Accounts Receivable
$
Allowance for Uncollectible Accounts
$
15
Cash
$
Accounts Receivable
$
GENERAL JOURNAL
Date
Description
Post.
Ref.
Debit
Credit
Mar.
15
Accounts Receivable
$
Sales
$
Apr.
15
Cash
$
Accounts Receivable
$
Aug.
15
Allowance for Uncollectible Accounts
$
Accounts Receivable
$
Nov.
15
Accounts Receivable
$
Allowance for Uncollectible Accounts
$
15
Cash
$
Accounts Receivable
$
Explanation / Answer
GENERAL JOURNAL
GENERAL JOURNAL
Post. Date Description Ref. Debit Credit Mar. 15 Accounts Receivable Merchandise sale $ 12,000 Sales $ 12,000 Apr. 15 Cash cash collection $ 6,000 Accounts Receivable $ 6,000 Aug. 15 Allowance for Uncollectible Accounts write off remaining $ 6,000 Accounts Receivable $ 6,000 Nov. 15 Accounts Receivable reversal of w/off $ 6,000 Allowance for Uncollectible Accounts $ 6,000 15 Cash remainig collection $ 6,000 Accounts Receivable $ 6,000