Question

May	1.	Sold merchandise on account to Beijing Palace Co., $36,010. The cost of the merchandise sold was $22,050.
Aug.	30.	Received $11,500 from Beijing Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible.
Dec.	8.	Reinstated the account of Beijing Palace Co. that had been written off on August 30 and received $24,510 cash in full payment. Journalize the transactions in the accounts of Sedona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Journal entyr

date	account and explanation	debit	credit
May 1	Account receivable	36010
	Sales		36010
	(To record sales)
	Cost of goods sold	22050
	Inventory		22050
	(To record cost of goods sold)
Aug 30	Cash	11500
	Allowance for doubtful accounts	24510
	Account receivable		36010
	(To record collection and write off)
Dec 8	Account receivable	24510
	Allowance for doubtful accounts		24510
	(To record reinstate)
	Cash	24510
	Account receivable		24510
	(To record collection)