24. In general journal form, record the ff transactions in the amounts of Good luck company, which uses the allowance method of accounting for uncollectible receivables.

Question

Jan.30. Sold merchandise on account to XYZ Co., $3,300.
July. 11. Received $1,980 from XYZ company and wrote off the remaineder owned on the sale of January 30 as uncollectible.
Dec.15. Reinstated the account of account that had been written off on July 11 and received $1,320 cash in full payment.

Answer 1

Jan. 30:
Accounts Receivable 3,300
Sales 3,300

July 11:
Allowance for Doubtful Accounts 1,320
Accounts Receivable 1,320

July 11:
Cash 1,980
Allowance for Doubtful Accounts 3,300
Accounts Receivable 4,980

Dec. 15:
Accounts Receivable 1,320
Allowance for Doubtful Accounts 1,320

Dec. 15:
Cash 1,320
Accounts Receivable 1,320