May 1. Sold merchandise on account to Taiwan Palace Co., $36,730. The cost of the merchandise sold was $25,310. Aug. 30. Received $11,950 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 $24,780 cash in full payment.
May 1. Sold merchandise on account to Taiwan Palace Co., $36,730. The cost of the merchandise sold was $25,310. Aug. 30. Received $11,950 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 $24,780 cash in full payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| May | 1. | Sold merchandise on account to Taiwan Palace Co., $36,730. The cost of the merchandise sold was $25,310. |
| Aug. | 30. | Received $11,950 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 $24,780 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. |
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