Journalize the following transactions in the accounts of Canyon River Medical Co
ID: 2513351 • Letter: J
Question
Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $55,600. The cost of goods sold was $30,000. June 2 Received $16,100 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible. Oct. 23 Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $39,500 cash in full payment.
Explanation / Answer
Jan-19. Sales A/C Dr...... $55,600
To Dr.kyle norby A/C $55,600
(Being goods sold on account)
June-2 Cash A/C Dr....... $16,100
To Dr.kyle norby A/C $16,100
(Being amount received from customer in part)
June-2 Bad debts A/C. Dr........ $39,500
To Dr.kyle norby A/C $39,500
(Being due amount considered as bad debt)
Oct-23 Cash A/C Dr........ $39,500
To Bad details recovered A/C $39,500
(Being amount received from bad debt)
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