# Chapter 5 - Receivables## Transactions- **April 2** Sold merchandise on account to Peking Palace Co. for $36,730. The cost of goods sold was $25,310.- **June 9** Received $11,950 from Peking Palace Co. and wrote off the remainder owed on the sale of April 2 as uncollectible.- **October 31** Reinstated the account of Peking Palace Co. that had been written off on June 9 and received $24,780 cash in full payment.Journalize the above transactions in the accounts of Dining Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables.## GENERAL JOURNAL| Date | Description | Post Ref | Debit | Credit ||------|-------------|----------|-------|--------|| | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | || | | | | |---### Additional Information- **January 1**: The Allowance for Doubtful Accounts had a balance of $10,000.- **December 31**: - Accounts Receivable balance = $1,000,000. - Sales for the year = $15,000,000. - Calculate the bad debt expense and the balance in the allowance account using the following assumptions: - **Receivables Method**: 2% - **% of Sales**: 1%---_Note: The table represents a general journal where transactions are recorded. Specific entries need to be journalized based on the transactions provided. Calculation of bad debt expenses will

The allowance for doubtful accounts has the credit balance. The net account receivables is…

Apr. 2. Sold merchandise on account to Peking Palace Co., $36,730. The cost of the goods sold was $25,310. June 9. Received $11,950 from Peking Palace Co. and wrote off the remainder owed on the sale of April 2 as uncollectible. Oct. 31. Reinstated the account of Peking Palace Co. that had been written off on June 9 and received $24,780 cash in full payment. Journalize the above transactions in the accounts of Dining Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. GENERAL JOURNAL Page

Apr. 2. Sold merchandise on account to Peking Palace Co., $36,730. The cost of the goods sold was $25,310. June 9. Received $11,950 from Peking Palace Co. and wrote off the remainder owed on the sale of April 2 as uncollectible. Oct. 31. Reinstated the account of Peking Palace Co. that had been written off on June 9 and received $24,780 cash in full payment. Journalize the above transactions in the accounts of Dining Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. GENERAL JOURNAL Page

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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