Question: In this exercise we continue our accounting for Graham s Yard

In this exercise, we continue our accounting for Graham’s Yard Care, Inc. from Chapter 6. Refer to the Continuing Exercise from Chapter 6. On August 18, Graham’s Yard Care, Inc. received $250 on account from Jim Henderson related to his July 15 purchase. On October 12, Jim notified Graham’s Yard Care, Inc. that he was filing for bankruptcy and that he would not be able to pay the remaining amount owed.
In continuing exercise
Jul 2 Completed lawn service and received cash of $500.
5 Purchased 100 plants on account for inventory, $250, plus freight in of $10.
15 Sold 40 plants on account, $400.
17 Consulted with a client on landscaping design for a fee of $150 on account.
20 Purchased 100 plants on account for inventory, $300.
21 Paid on account, $100.
25 Sold 100 plants for cash, $700.
31 Recorded the following adjusting entries:
Accrued salaries for the month of July equal $225
Depreciation on equipment $30
Physical count of plant inventory, 50 plants
Journalize the entry to record the payment from Jim and to record the write off of Jim’s uncollectible account. Assume that Graham’s Yard Care, Inc. uses the allowance method to account for Doubtful Accounts.

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  • CreatedJuly 08, 2015
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