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Lostsunrise [7]
2 years ago
11

Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the dir

ect write-off method of accounting for uncollectible receivables:
Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $6,400. The cost of goods sold was $3,000.

June 2 Received $500 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 $5,900 cash in full payment. I need the journal entries
Business
1 answer:
Luba_88 [7]2 years ago
8 0

Answer:

  • Jan. 19

Dr Accounts receivable $ 6,400

Cr Sales $ 6,400

Dr Cost of Goods $ 3,000

Cr Inventories $ 3,000

  • June 2

Dr Cash $ 500

Cr Accounts receivable $ 500

Dr Bad Debt Expense $ 5,900

Cr Accounts receivable $ 5,900

  • Oct. 23

Dr Accounts receivable $ 5,900

Dr Bad Debt Expense $ 5,900

Dr Cash $ 5,900

Cr Accounts receivable $ 5,900

Explanation:

Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $6,400. The cost of goods sold was $3,000.  

Dr Accounts receivable $ 6,400

Cr Sales $ 6,400

Dr Cost of Goods $ 3,000

Cr Invetories $ 3,000

June 2 Received $500 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.  

Dr Cash $ 500

Cr Accounts receivable $ 500

Dr Bad Debt Expense $ 5.900

Cr Accounts receivable $ 5.900

In the direct Write-Off method, bad debts are directley cancel at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount.

Oct. 23 Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $5,900 cash in full payment.  

Dr Accounts receivable $ 5,900

Dr Bad Debt Expense $ 5,900

Dr Cash $ 5,900

Cr Accounts receivable $ 5,900

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The formula to compute the cost of the building equal to

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6 0
3 years ago
The Alpha Beta Corporation disposes a capital asset with an original cost of​ $170,000 and accumulated depreciation of​ $109,000
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Answer:

Option D) $54.400

Explanation:

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This value it's the cost of sale and the price it's $50.000 , the result of this transaction it's a loss of ($11.000) so the after-tax cash inflow it's ($4.400).

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3 years ago
The classification and normal balance of the drawing account are a.expense, debit balance b.expense, credit balance c.liability,
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Answer:

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Drawing is the money or goods taken out from business by its owner. This act is usually common in partnership or sole proprietorship.

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Rp = (Re - Rf) B = (9.775% - 4%)/1.05 = 5.5%

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