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., $18,900. The cost of the merchandise sold was $11,200.Aug. 30. Received $8,000 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 $10,900 cash in full payment.

Question

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., $18,900. The cost of the merchandise sold was $11,200.
Aug. 30. Received $8,000 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 $10,900 cash in full payment.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Beginning inventory, purchases, and sales data for widgets are as follows: April 3         Invent...

A: Cost of Goods SoldCost of goods sold refers to the direct costs of producing the goods sold by a com...

Q: Which of the following characteristics best describes a corporation?  business with a single owner ...

A: Stockholder’s not personally liable for entity’s debts is the correct answer

Q: Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com u...

A: a. Calculate the inventory turnover for Target and Amazon.com.

Q: Preparing the financial statements Estella Osage publishes an online travel magazine. In need of cas...

A: 1.The four basic financial statements are as follows:Balance sheet.Income statement.Statement of cas...

Q: Using the accounting equation to analyze business transactions Indicate the effects of the following...

A: Click to see the answer

Q: Baker Bakery Company just began business and made the following four inventory purchases in June: ...

A: First-in-First-Out: In First-in-First-Out method, the costs of the initially purchased items are con...

Q: The inventory at the end of the year was understatedby $14,750. (a) Did the error cause an overstate...

A: (a) 

Q: Journalize the following transactions, using the allowance method of accounting for uncollectible re...

A: Allowance methodIt is a method for accounting bad debt expense, where uncollectible accounts receiva...

Q: A company had a beginning balance in retained earnings of $44,600. It had net income of $7,600 and d...

A: Retained earnings:Retained earnings are that portion of profits which are earned by a company but no...

Q: Production estimates for July for Starling Co. are as follows: Estimated inventory (units), July ...

A: The purchases of materials during the month can be derived from the following formulaPurchases=Sales...

Q: Assets Liabilities Beginning of Year: $26,000 $19,000 End of Year: $61,000 $29,000 1. If ne...

A: Determine equity at the beginning and end of the year.

Q: The merchandise inventory was destroyed by fire on December 13. The following data were obtained fro...

A:  

Q: The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:...

A: a.

Q: Why is it important to take a physical inventory periodically when using a perpetual inventory syste...

A: Physical inventory: Physical inventory is the actual inventory which can be counted tangibly. Usuall...

Q: The Red and Blue partnership has been created to operate a law firm. The partners have been attempti...

A: Partnership:Partnership is defined as an association of two or more persons to carry business for pr...

Q: Define value chain and classification of costs for “Purchase of competitor’s products for testing ag...

A: Value Chain: 

Q: Which is a disadvantage of an enterprise resource planning (ERP) system? Helps companies adjust to ...

A: Enterprise resource planning: It is a process that integrates different areas of the organization li...

Q: The balance sheet reports the Financial position on a specific date. Results of operations on a spe...

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabi...

Q: Financial data for Bonita Company follow: For Year Ended December 31 $ 187,180 Cash on December 31 C...

A: The cash to monthly cash expense ratio is calculated to check the number of times the ending cash ba...

Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported...

A: Financial StatementFinancial Statement is the combination of the three major reports on a business. ...

Q: Santana Co. is evaluating a project requiring a capital expenditure of $790,000. The project has an ...

A: Click to see the answer

Q: Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the...

A: Cash collections refer to the amount of cash collected from the customers on sales and from the debt...

Q: Beginning inventory, purchases, and sales for Item Delta are as follows: July 1 Inventory 50 units a...

A: Perpetual Inventory System refers to the inventory system that maintains the detailed records of eve...

Q: The following were selected from among the transactions completed by Essex Company during July of th...

A: Following are the journal entries:

Q: A building acquired at the beginning of the year at a cost of $112,000 has an estimated residual val...

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are ...

Q: Briefly describe the two major fields of accounting.

A: Accounting:Accounting is the process of recording, summarizing and examining the business events and...

Q: 4. Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this div...

A: a. Prepare a responsibility report for patio furniture division for the year as shown below:

Q: Journalize the following transactions, using the direct write-off method of accounting for uncollect...

A: Under the direct write-off method for uncollectible receivables, the specific accounts receivable wh...

Q: Identifying accounts Consider the following accounts: Notes Receivable Common Stock Prepaid Insuran...

A: Identify each account as asset (A), laibility (L), Equity (E):

Q: December 31, 2011 Cash  137,000 Bonds payable (due 2050)  100,000 Accounts payable  22,000 ...

A: Prepare income statement and statement of retained earnings: 

Q: What is an enterprise resource planning (ERP) system? What are the advantages and disadvantages of u...

A: Click to see the answer

Q: Pearson Company bought a machine on July 1, 2022. The machine cost $180,000 and had an expected salv...

A: Depreciation refers to the amount of permanent loss in the value of an asset. It is reduction in the...

Q: The balance of Cash is likely to differ from the bank statement balance. What two factors are likely...

A: Bank Statement: A report or summary that records financial transactions of deposits and withdrawals ...

Q: Please refer both the images

A: Lower of cost or market value: 

Q: Journalize the following transactions, using the direct write-off method of accounting for uncollect...

A: Click to see the answer

Q: Five-step decision-making process, service firm.  Sizemore Landscaping is a firm that provides comme...

A: Click to see the answer

Q: Hello There, I really appreciate clarification on how to answer the 2 questions. Thanks, Chris

A: The income statement is a financial statement that represents the financial performance of the compa...

Q: At the end of the current year, Accounts Receivable has a balance of $3,750,000, Allowance for Doubt...

A: Accounts receivableAccounts receivable refers to the amounts to be received within a short period fr...

Q: Forester Manufacturing Company uses a job order cost accounting system to keep track of finished job...

A: 1. Prepare general journal entries for the foregoing transactions.

Q: Miller and Sons' static budget for 10,100 units of production includes $38,300 for direct materials,...

A: The correct answer is Option (b).

Q: Triple Creek Hardware Store currently uses a periodic inventory system. Kevin Carlton, the owner, is...

A: Control over inventory is a technique whereby the inventory is safeguarded as soon as the order of i...

Q: Identifying accounts Consider the following accounts: Accounts Payable Cash Common Stock Accounts R...

A: Classification of items:

Q: Financial statement data for years ending December 31 for Tango Company follow: 20Υ7 20Υ6 Cost of me...

A: (a)Determine the inventory turnover for 20Y7 and 20Y6.

Q: Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. ...

A: Trial balance: Trial balance is a summary of all the ledger accounts balances presented in a tabular...

Q: 1.Explain how XBRL differs from HTML and how XBRL is being used in financial reporting. 2.Do you bel...

A: Lets understand what is XBRL & HTML first-XBRL means  xtensible business reporting language is a...

Q: Explain the posting process of the cash payments journal?

A: Click to see the answer

Q: Identifying source documents For each transaction, identify a possible source document. The busines...

A: Whenever an organisation makes any financial transaction, it generates some paper trails or records....