Journalize the following transactions using the allowance method of accounting for uncollectible receivables. April 1 Sold merchandise on account to Jim Dobbs, $6,800. The cost of the merchandise is $6,700.
June 10 Received $1,400 from Jim Dobbs and wrote off the remainder owed of $5,400.
Oct. 11 Reinstated the account of Jim Dobbs and received $5,400 cash in full payment.
April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise 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 for and received cash in full payment.

See the journal entries with narration below.

Explanation:

a. For the first set of transactions, the journal entries will look as follows:

Date        Details                                              Dr ($)           Cr ($)        

April 1  Account Receivable - J. Dobbs         6,800  

           Sales                                                                        6,800

           To record sale of merchandising on account to Jim Dobbs.

April 1  Cost of goods sold                             6,700  

           Inventory                                                                 6,700

           To record cost of goods sold to Jim Dobbs.           

June 10  Cash                                                 1,400  

              Allow. for doubtful acct. (B. debt)   5,400  

              Account Receivable - J. Dobss                          6.800

              To record cash receipt J. Dobbs and amount written off.  

Oct. 11  Account Receivable - J. Dobbs         5,400  

            Allowance for doubtful accounts                          5,400

            To reinstate Jim Dobbs' account receivable.                       

Oct. 11  Cash                                                    5,400  

            Account Receivable                                             5,400

           To record cash received from Jim Dobbs' in full.          

b. For the first set of transactions, the journal entries will look as follows:

Date        Details                                              Dr ($)           Cr ($)        

April 1  Account Receivable - J. Dobbs          7,200  

           Sales                                                                        7,200

           To record sale of merchandising on account to Jim Dobbs.

April 1  Cost of goods sold                             5,400  

           Inventory                                                                 5,400

           To record cost of goods sold to Jim Dobbs.          

June 10  Cash (1/3 * 7,200)                           2,400  

              Allow. for doubtful acct. (B. debt)  4,800  

              Account Receivable - J. Dobss                          7,200

             To record cash receipt J. Dobbs and amount written off.   

Oct. 11  Account Receivable - J. Dobbs          4,800  

           Allowance for doubtful accounts                           4,800

           To reinstate Jim Dobbs' account receivable.                      

Oct. 11  Cash                                                      4,800  

           Account Receivable                                                4,800

           To record cash received from Jim Dobbs' in full.