InstructionsМay1.Sold merchandise on account to Taiwan Palace Co., $36,000. The cost of the merchandise sold was$23,540.Aug.30.Received $10,380 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 asபாலlectble®Dec.8,Reinstated the account of Taiwan Palace Co. that had been written off on August 30 and received$25,620 cash in full payment.Required:Journalize the above transactions Inn the accounts of Arizona Interfors Company, a restaurant supply company that uses the allowance methodof accounting for uncollectible receivables Referto the chart of accounts for the exact wording of the account tides. CNOW journals do not uselines for journal explanatrions Every line on a journa/ page is used for debit or credit entries CNOWjournals will automatically indent a creditentrv when acredit amnuntis entered

Name: InstructionsМay1.Sold merchandise on account to Taiwan Palace Co., $3
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Description: InstructionsМay1.Sold merchandise on account to Taiwan Palace Co., $36,000. The cost of the merchandise sold was$23,540.Aug.30.Received $10,380 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 asபாலlectble®Dec.8,Reinstate

Solution:- Preparation of journal entries as follows under:-

Business

Accounting

May 1. Sold merchandise on account to Taiwan Palace Co., $36,000. The cost of the merchandise sold was $23,540. Aug. 30. Received $10,380 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 $25,620 cash in full payment. Required: Journalize the above transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered

May 1. Sold merchandise on account to Taiwan Palace Co., $36,000. The cost of the merchandise sold was $23,540. Aug. 30. Received $10,380 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 $25,620 cash in full payment. Required: Journalize the above transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered

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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