Respuesta :
Answer:
The entries will be:
May 24
Dr Cost of good sold           11,000
 Cr Inventory                  11,000
(to record cost of good sold)
Dr Account Receivable          18,450
 Cr Sales revenue              18,450
(to record revenue on account)
Sept 30
Dr Cash                          6,000
Dr Allowance for doubtful debt       12,450
Cr Account Receivable             18,450
(to record partial collection from Old Town cafe and written-off of the remaining)
Dec 7
Dr Account Receivable           12,450
Cr Allowance for Doubtful debt    12,450
(to re-instated account receivable from Old Town cafe)
Dr Cash                12,450
Cr Account Receivable   12,450
(to record full collection from Old Town cafe)
Explanation:
May 24:
+ Cost of good sold is $11,000 so it is recorded as Increase in COGS (Dr) and decrease in inventory delivered (Cr);
+ Account receivable increase (Dr) and Sales revenue increases (Cr) following the sales on account.
Sept 30:
As the company apply the allowance method of accounting for uncollectible receivables, the written off of Receivable (Cr) will include the written off of Allowance for doubtful debt (Dr).
Dec 7:
The reinstated of account receivable will include the reverse written off entries ( Dr Account Receivable Cr Allowance for doubtful debt) before the collection entry is made ( Dr Cash Cr Account Receivable).