Jan.19.Sold merchandise on account to Dr. Dale Van Dyken, $15,800. The cost of the merchandise sold was $9,890.July7.Received $4,800 Dr. Dale Van Dyken and wrote off the remainder owed on the sale of January 19 as uncollectible.Nov.2.Reinstated the account of Dr. Dale Van Dyken that had been written off on July 7 and received $11,000 cash in full payment. Required: Journalize the above transactions in the accounts of Champion Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.

Accounts receivable reflect the amount of revenue which is due from the customers. This arises when the customers avail the goods on credit. It is recorded as an asset.The journal entries are as follows: Date Particulars Debit ($) Credit ($) Jan 19 Accounts receivable 15,800 Sales revenue 15,800 (To record the goods sold to Dr. Dale Van Dyken) Cost of goods sold 9,890 Inventory 9,890 (To record the cost of mechanise sold) July 7 Cash 4,800 Bad debts expense 11,000 Accounts receivable 15,800 (To record the cash received from Dr. Dale Van Dyken and remaining as bad debts) Nov 2 Accounts receivable 11,000 Bad debts expense 11,000 (To record reinstatement of account of Dr. Dale Van Dyken) Cash 11,000 Accounts receivable 11,000 (to record the amount received from Dr. Dale Van Dyken)

Answered: Jan. 19. Sold merchandise on account to…

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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Jan.	19.	Sold merchandise on account to Dr. Dale Van Dyken, $15,800. The cost of the merchandise sold was $9,890.
July	7.	Received $4,800 Dr. Dale Van Dyken and wrote off the remainder owed on the sale of January 19 as uncollectible.
Nov.	2.	Reinstated the account of Dr. Dale Van Dyken that had been written off on July 7 and received $11,000 cash in full payment.

Required:

Journalize the above transactions in the accounts of Champion Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.

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