Instructions

Jan.	19	Sold merchandise on account to Dr. Kyle Norby, $17,960. The cost of the goods sold was $9,990.
June	2	Received $5,530 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 $12,430 cash in full payment.

Journalize the above 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. Refer to the Chart of Accounts for exact wording of account titles.

Journalize the 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. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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Transcribed Image Text:

CHART OF ACCOUNTS Canyon River Medical Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable-Dr. Kyle Norby 131 Interest Receivable EXPENSES 132 Notes Receivable 510 Cost of Goods Sold 141 Inventory 520 Sales Salaries Expense 145 Office Supplies 521 Advertising Expense 146 Store Supplies 522 Depreciation Expense-Store Equipment 151 Prepaid Insurance 523 Delivery Expense 181 Land 524 Repairs Expense 191 Store Equipment 529 Selling Expenses 192 Accumulated Depreciation-Store Equipment 530 Office Salaries Expense 193 Office Equipment 531 Rent Expense CHART OF ACCOUNTS Canyon River Medical Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable-Dr. Kyle Norby 131 Interest Receivable EXPENSES 132 Notes Receivable 510 Cost of Goods Sold 141 Inventory 520 Sales Salaries Expense 145 Office Supplies 521 Advertising Expense 146 Store Supplies 522 Depreciation Expense-Store Equipment 151 Prepaid Insurance 523 Delivery Expense 181 Land 524 Repairs Expense 191 Store Equipment 529 Selling Expenses 192 Accumulated Depreciation-Store Equipment 530 Office Salaries Expense 193 Office Equipment 531 Rent Expense

Answer rating: 100% (QA)

Canyon River Medical Co Entry No Date Particular Debit Credit 121 Jan19 Accounts ReceivableDr Kyle ... View the full answer