Questions
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question4ocx.docx|
May |
1. |
Sold merchandise on account to Taiwan Palace Co., $36,000. The cost of the merchandise sold was $23,540. |
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Aug. |
30. |
Received $10,380 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible. |
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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:
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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. |
CHART OF ACCOUNTSArizona Interiors CompanyGeneral Ledger
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ASSETS |
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110 |
Cash |
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111 |
Petty Cash |
|
121 |
Accounts Receivable-Taiwan Palace Co. |
|
129 |
Allowance for Doubtful Accounts |
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131 |
Interest Receivable |
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132 |
Notes Receivable |
|
141 |
Merchandise Inventory |
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145 |
Office Supplies |
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146 |
Store Supplies |
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151 |
Prepaid Insurance |
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181 |
Land |
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191 |
Store Equipment |
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192 |
Accumulated Depreciation-Store Equipment |
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193 |
Office Equipment |
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194 |
Accumulated Depreciation-Office Equipment |
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LIABILITIES |
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210 |
Accounts Payable |
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211 |
Salaries Payable |
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213 |
Sales Tax Payable |
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214 |
Interest Payable |
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215 |
Notes Payable |
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EQUITY |
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310 |
Owner, Capital |
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311 |
Owner, Drawing |
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312 |
Income Summary |
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REVENUE |
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410 |
Sales |
|
610 |
Interest Revenue |
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EXPENSES |
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510 |
Cost of Merchandise Sold |
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520 |
Sales Salaries Expense |
|
521 |
Advertising Expense |
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522 |
Depreciation Expense-Store Equipment |
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523 |
Delivery Expense |
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524 |
Repairs Expense |
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529 |
Selling Expenses |
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530 |
Office Salaries Expense |
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531 |
Rent Expense |
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532 |
Depreciation Expense-Office Equipment |
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533 |
Insurance Expense |
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534 |
Office Supplies Expense |
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535 |
Store Supplies Expense |
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536 |
Credit Card Expense |
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537 |
Cash Short and Over |
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538 |
Bad Debt Expense |
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539 |
Miscellaneous Expense |
|
710 |
Interest Expense |
PAGE 1
JOURNAL
ACCOUNTING EQUATION
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DATE |
DESCRIPTION |
POST. REF. |
DEBIT |
CREDIT |
ASSETS |
LIABILITIES |
EQUITY |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
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7 |
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8 |
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9 |
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10 |
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11 |
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May 1
