Answered

Connect with experts and get insightful answers on IDNLearn.com. Get accurate and timely answers to your queries from our extensive network of experienced professionals.

Journalize the following transactions in the accounts of Arizona Interiors Company, a Restaurant Supply Company that uses the allowance method of accounting for uncollectible receivables:

May 1. Sold merchandise on account to Taiwan Palace Co., $13,400. The cost of the merchandise sold was $9,600.
Aug. 30. Received $2,800 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible.
Dec. 8. Reinstated the account of Taiwan Palace Co. that had been written off on August 30 and received $10,600 cash in full payment.

Sagot :

Abiolataiwo2015idn

Answer:

May 1

Dr Cost of merchandise sold $9,600

Cr Merchandise inventory $9,600

Aug. 30

Dr cash $2,800

Dr Allowance for doubtful accounts $10,600

Cr accounts receivable-peking palace co $13,400

Dec. 8

Dr Accounts receivable - peking palace co $10,600

Cr Allowance for doubtful accounts $10,600

Explanation:

Preparation of the journal entries in the accounts of Arizona Interiors Company

May 1

Dr Cost of merchandise sold $9,600

Cr Merchandise inventory $9,600

Aug. 30

Dr cash $2,800

Dr Allowance for doubtful accounts $10,600

($13,400-$2,800)

Cr accounts receivable-peking palace co $13,400

Dec. 8

Dr Accounts receivable - peking palace co $10,600

Cr Allowance for doubtful accounts $10,600

Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. Find precise solutions at IDNLearn.com. Thank you for trusting us with your queries, and we hope to see you again.