90.2K

Verified Solution

Link Copied!

May 1. Sold merchandise on account to Taiwan Palace Co., $25,800. The cost of the merchandise sold was $15,300. Aug. 30. Received $10,900 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 $14,900 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. Chart of Accounts CHART OF ACCOUNTS Arizona Interiors Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable-Taiwan Palace Co. 129 Allowance for Doubtful Accounts EXPENSES 131 Interest Receivable 510 Cost of Merchandise Sold 132 Notes Receivable 520 Sales Salaries Expense 141 Merchandise Inventory 521 Advertising Expense 145 Office Supplies 522 Depreciation Expense-Store Equipment 146 Store Supplies 523 Delivery Expense 151 Prepaid Insurance 524 Repairs Expense 181 Land 529 Selling Expenses 101 Staro Couinmont 530 Office Salaries Exnense x Chart of Accounts 191 Store Equipment 530 Office Salaries Expense 192 Accumulated Depreciation-Store Equipment 531 Rent Expense 193 Office Equipment 532 Depreciation Expense-Office Equipment 194 Accumulated Depreciation Office Equipment 533 Insurance Expense 534 Office Supplies Expense LIABILITIES 535 Store Supplies Expense 210 Accounts Payable 536 Credit Card Expense 211 Salaries Payable 537 Cash Short and Over 213 Sales Tax Payable 538 Bad Debt Expense 214 Interest Payable 539 Miscellaneous Expense 215 Notes Payable 710 Interest Expense EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Journal PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11

Answer & Explanation Solved by verified expert

See Answer