Entries for Uncollectible Receivables, using Allowance Method ournalize the following transactions in the accounts of Sedona Interiors Company, a Restaurant Supply Company that uses the allowance met ancollectible receivables: May 1. Sold merchandise on account to Beijing Palace Co., $13,100. The cost of the merchandise sold was $9,400. Aug. 30. Received $2,800 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 $10,300 cash in full payment. For a compound transaction, if an amount box does not require an entry, leave it blank. May 1-sale May 1-cost
Entries for Uncollectible Receivables, using Allowance Method ournalize the following transactions in the accounts of Sedona Interiors Company, a Restaurant Supply Company that uses the allowance met ancollectible receivables: May 1. Sold merchandise on account to Beijing Palace Co., $13,100. The cost of the merchandise sold was $9,400. Aug. 30. Received $2,800 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 $10,300 cash in full payment. For a compound transaction, if an amount box does not require an entry, leave it blank. May 1-sale May 1-cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Entries for Uncollectible Receivables, using Allowance Method
Journalize the following transactions in the accounts of Sedona Interiors Company, a Restaurant Supply Company that uses the allowance method of accounting for
uncollectible receivables:
May 1. Sold merchandise on account to Beijing Palace Co., $13,100. The cost of the merchandise sold was $9,400.
Aug. 30.
Received $2,800 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 $10,300 cash in full payment.
For a compound transaction, if an amount box does not require an entry, leave it blank.
May 1-sale:
May 1-cost
Aug. 30
Dec. 8-reinstated
Print Rom
Dec. 8-collection.
0 0
0
0000 0
0000 00
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