Raynette Ramos, owner of Ramos Rentals, uses the allowance
Question and Solution
Raynette Ramos, owner of Ramos Rentals, uses the allowance method in accounting for uncollectible accounts. Record the following transactions in general journal form: July 9 Wrote off $6,040 owed by Sue Sanchez, who has no assets. Aug. 15 Wrote off $4,790 owed by Lonnie Jones, who declared bankruptcy. Sept. 23 Reinstated the account of Sue Sanchez, which had been written off on July 9, and received $6,040 cash in full settlement.