Entries for uncollectible receivables, using allowance method OBJ.A 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., $25,800. The cost of the merchandise sold was $15.300. Aug. 30. Received $10,900 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 $14,900 cash in full payment.
Entries for uncollectible receivables, using allowance method OBJ.A 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., $25,800. The cost of the merchandise sold was $15.300. Aug. 30. Received $10,900 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 $14,900 cash in full payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Entries for uncollectible receivables, using allowance method
OBJ.A
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., $25,800. The cost of the
merchandise sold was $15.300.
Aug. 30. Received $10,900 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 $14,900 cash in full payment.
Transcribed Image Text:pue
EX 9-4 Entries for uncollectible receivables, using allowance method
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:
OBJ. 4
May 1. Sold merchandise on account to Taiwan Palace Co., $25,800. The cost of the
merchandise sold was $15,300.
Aug. 30. Received $10,900 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
12000
August 30 and received $14,900 cash in full payment.
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