Question

Sold merchandise on account to Beijing Palace Co., $18,900. The cost of the merchandise sold was $11,200 Received $8,000 from Beijing Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible Reinstated the account of Beijing Palace Co. that had been written off on August 30 and received $10,900 cash in full payment. May 1. Aug. 30. Dec. 8. 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.

Answer 1

The journal entries are given as follows

Step-by-step explanation:

May-1

Accounts Receivable-Beijing Palace Dr.$18,900

Sales Cr.$18,900

Aug-30

Cash Dr.$8,000

Accounts Receivable-Beijing Palace Cr.$8,000

Bad Debt Expense Dr.$10,900

Accounts Receivable-Beijing Palace Cr.$10,900

Dec-8

Accounts Receivable-Beijing Palace Dr.$10,900

Bad Debt Expense Cr.$10,900

Cash Dr.$10,900

Accounts Receivable-Beijing Palace Cr.$10,900