Question

Need help with this assginment...Please read the whole information.

Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $18,040. The cost of the goods sold was $9,550. Received $5,010 from Dr. Kyle Norby and wrote of 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 $13,030 cash in full payment. Journalze 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 rocovables. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSCanyon River Medical Co. General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Dr. Kyle Norby 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

Answer 1

Accounting Equation Assets Liabilites Equity Date Credit Journal Description Jan-19 Accounts Receivable-Dr. Kyle Norby Sales (To record the credit sales) Post ref. Debit $ 18,040 $ 18,040 $ 9,550 Cost of goods sold Inventory (To record the cost of goods sold) $ 9,550 $ 5,010 $ 13,030 Jun-02 Cash Bad debt expense ($18,040-$5,010) Accounts Receivable-Dr. Kyle Norby (To record the receipt and bad debts expense) $ 18,040 $ 13,030 Oct-23 Accounts Receivable-Dr. Kyle Norby Bad debts expense (To reinstate the account) $ 13,030 $ 13,030 Oct-23 Cash Accounts Receivable-Dr. Kyle Norby (To record the receipt of accounts receivable) $ 13,030