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.
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.
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