Instructions May 24 Sold merchandise on account to Old Town Cafe $18,450.The cost of goods sold was $11,000. Sept.
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Instructions


May 24 Sold merchandise on account to Old Town Cafe $18,450.The

cost of goods sold was $11,000.


Sept.30 Received $6,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible.


Dec.7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $12,450 cash in full payment.


Journalize the above transactions in the accounts of Zippy 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.



CHART OF ACCOUNTS

Zippy Interiors Company General Ledger


ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Old Town Cafe 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment


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 313 Income Summary


REVENUE 410 Sales 610 Interest Revenue


EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense




All transactions on this page must be entered (except for post ref(s))

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JOURNAL

ACCOUNTING EQUATION



DATE DESCRIPTION POST. REF .DEBIT CREDIT ASSETS LIABILITIES EQUITY 1



 






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Top Answer

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Journal Entries.jpg

Date
Particulars
Debit
Credit
24-May Accounts Receivable-Old Town Cafe
$18,450
To Sales
$18,450
24-May Cost of Goods Sold
$11,000
To Inventory
$11,000
30-Sep Cash
$6,000
To Accounts Receivable-Old...

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