Assuming That the Allowance Method Is Being Used, Prepare Journal

question 85

Essay

Assuming that the allowance method is being used, prepare journal entries to record the following transactions. Omit explanations.
Mar. 15 Sold merchandise to Faust for $6,000 on account.
Apr. 15 Received $3,000 from Faust.
Aug. 15 Wrote off Faust's account as uncollectible.
Nov. 15 Unexpectedly received payment in full from Faust.

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Definitions:

Leasehold Estate

The creation of an ownership interest in the tenant. An interest in real estate that is held under a lease. Also called tenancy.

Life Estate

An estate in which the owner owns real property for his or her life or for the life of another.

Reversion Estate

A future interest in property when title is to return to the grantor or grantor’s heirs upon expiration of a life estate.

Tenancy In Common

A form of joint ownership of property where each owner holds a percentage interest that can be sold or inherited independently of the others.