Question

May	1.	Sold merchandise on account to Beijing Palace Co., $36,000. The cost of the merchandise sold was $23,540.
Aug.	30.	Received $10,380 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 $25,620 cash in full payment.

Required:

Journalize the above 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.

CHART OF ACCOUNTS

Sedona Interiors Company

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-Beijing Palace Co.
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Sales Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Store Equipment
523	Delivery Expense
524	Repairs Expense
529	Selling Expenses
530	Office Salaries Expense
531	Rent Expense
532	Depreciation Expense-Office Equipment
533	Insurance Expense
534	Office Supplies Expense
535	Store Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense

May	1.	Sold merchandise on account to Beijing Palace Co., $36,000. The cost of the merchandise sold was $23,540.
Aug.	30.	Received $10,380 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 $25,620 cash in full payment.

Required:

Journalize the above 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.

X

Chart of Accounts

CHART OF ACCOUNTS

Sedona Interiors Company

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-Beijing Palace Co.
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Sales Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Store Equipment
523	Delivery Expense
524	Repairs Expense
529	Selling Expenses
530	Office Salaries Expense
531	Rent Expense
532	Depreciation Expense-Office Equipment
533	Insurance Expense
534	Office Supplies Expense
535	Store Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense

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.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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Answer 1

Date	Description	Post ref	Debit	Credit	Assets	Liabilities	Equity
May 1	Accounts Receivable-Beijing Palace Co.		36000		↑
	Sales			36000			↑
May 1	Cost of Merchandise Sold		23540				↓
	Merchandise Inventory			23540	↓
Aug 30	Cash		10380		↑
	Allowance for Doubtful Accounts		25620		↑
	Accounts Receivable-Beijing Palace Co.			36000	↓
Dec 8	Accounts Receivable-Beijing Palace Co.		25620		↑
	Allowance for Doubtful Accounts			25620	↓
Dec 8	Cash		25620		↑
	Accounts Receivable-Beijing Palace Co.			25620	↓