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Category > Accounting Posted 25 Sep 2017 My Price 4.00

Lamp Light Company

EX 8-4 Entries for uncollectible receivables, using allowance method

Journalize the following transactions in the accounts of Lamp Light Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

Mar. 19. Sold merchandise on account to Midnight Delights Co., $37,500. The cost of the merchandise sold was $23,000.

Aug. 31. Received $22,000 from Midnight Delights Co. and wrote off the remainder owed on the sale of March 19 as uncollectible.

Dec. 22. Reinstated the account of Midnight Delights Co. that had been written off on August 31 and received $15,500 cash in full payment.

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Status NEW Posted 25 Sep 2017 10:09 PM My Price 4.00

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