Using the allowance method of accounting for uncollectible receivables. Transactions: April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400. June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment. Required: Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Alan Albertson 122 Accounts Receivable-Jim Dobbs 123 Accounts Receivable-John Groves 124 Accounts Receivable-Jan Lehn 125 Accounts Receivable-Jacob Marley 126 Accounts Receivable-Mr.Potts 127 Accounts Receivable-Chad Thomas 128 Accounts Receivable-Andrew Warren 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable
Using the allowance method of accounting for uncollectible receivables. Transactions: April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400. June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment. Required: Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Alan Albertson 122 Accounts Receivable-Jim Dobbs 123 Accounts Receivable-John Groves 124 Accounts Receivable-Jan Lehn 125 Accounts Receivable-Jacob Marley 126 Accounts Receivable-Mr.Potts 127 Accounts Receivable-Chad Thomas 128 Accounts Receivable-Andrew Warren 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 14GI
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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.
Question
Using the allowance method of accounting for uncollectible receivables.
| Transactions: | ||
| April | 1 | Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400. |
| June | 10 | Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. |
| Oct. | 11 | Reinstated the account of Jim Dobbs and received cash in full payment. |
Required:
|
Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles. |
CHART OF ACCOUNTS General Ledger
| ASSETS | |
| 110 | Cash |
| 111 | Petty Cash |
| 121 | Accounts Receivable-Alan Albertson |
| 122 | Accounts Receivable-Jim Dobbs |
| 123 | Accounts Receivable-John Groves |
| 124 | Accounts Receivable-Jan Lehn |
| 125 | Accounts Receivable-Jacob Marley |
| 126 | Accounts Receivable-Mr.Potts |
| 127 | Accounts Receivable-Chad Thomas |
| 128 | Accounts Receivable-Andrew Warren |
| 129 | Allowance for Doubtful Accounts |
| 131 | Interest Receivable |
| 132 | Notes Receivable |
| 141 | Inventory |
| 145 | Supplies |
| 151 | Prepaid Insurance |
| 181 | Land |
| 191 | Equipment |
| 192 |
| LIABILITIES | |
| 210 | Accounts Payable |
| 211 | Salaries Payable |
| 213 | Sales Tax Payable |
| 214 | Interest Payable |
| 215 | Notes Payable |
| EQUITY | |
| 310 | Common Stock |
| 311 | Retained Earnings |
| 312 | Dividends |
| REVENUE | |
| 410 | Sales |
| 610 | Interest Revenue |
| EXPENSES | |
| 510 | Cost of Goods Sold |
| 520 | Salaries Expense |
| 521 | Advertising Expense |
| 522 | Depreciation Expense |
| 523 | Delivery Expense |
| 524 | Repairs Expense |
| 531 | Rent Expense |
| 533 | Insurance Expense |
| 534 | Supplies Expense |
| 536 | Credit Card Expense |
| 537 | Cash Short and Over |
| 538 | |
| 539 | Miscellaneous Expense |
| 710 | Interest Expense |
Transcribed Image Text:General Journal
Journalize each of the transaction. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL
DATE
DESCRIPTION
POST. REF.
DEBIT
1
2
3
5
6
7
8
9
10
11
CREDIT
PAGE 1
ACCOUNTING EQUATION
LIABILITIES
ASSETS
EQUITY
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