Instructions Journalize the above transactions in the accounts of Midwest Medica
ID: 2496609 • Letter: I
Question
Instructions
Journalize the above transactions in the accounts of Midwest 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.
Chart of Accounts
CHART OF ACCOUNTSMidwest Medical Co.General Ledger
Interest Expense
Journal
Journalize the transactions in the accounts of Midwest 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
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Feb. 3. Sold merchandise on account to Dr. Jill Hall, $16,590. The cost of the merchandise sold was $9,660. Sept. 10. Received $4,010 from Dr. Jill Hall and wrote off the remainder owed on the sale of February 3 as uncollectible. Dec. 21. Reinstated the account of Dr. Jill Hall that had been written off on September 10 and received $12,580 cash in full payment.Explanation / Answer
JOURNAL
DATE
ACCOUNTS / DESCRIPTION
POST. REF.
DEBIT
CREDIT
Feb. 3
Accounts Receivables - Dr. Jill Hall
$ 16,590
Sales
$ 16,590
(Being Merchandise sold on account)
Cost of Merchandise Sold
$ 9,660
Merchandise Inventory
$ 9,660
(Being Merchandise sold)
Sept. 10
Cash
$ 4,010
Bad Debt Expense (16590 - 4010)
$ 12,580
Accounts Receivables - Dr. Jill Hall
$ 16,590
(Being amount collected and account written off)
Dec. 21
Accounts Receivables - Dr. Jill Hall
$ 12,580
Bad Debt Expense
$ 12,580
(Being account reinstated )
Cash
$ 12,580
Accounts Receivables - Dr. Jill Hall
$ 12,580
(Being Payment received)
JOURNAL
DATE
ACCOUNTS / DESCRIPTION
POST. REF.
DEBIT
CREDIT
Feb. 3
Accounts Receivables - Dr. Jill Hall
$ 16,590
Sales
$ 16,590
(Being Merchandise sold on account)
Cost of Merchandise Sold
$ 9,660
Merchandise Inventory
$ 9,660
(Being Merchandise sold)
Sept. 10
Cash
$ 4,010
Bad Debt Expense (16590 - 4010)
$ 12,580
Accounts Receivables - Dr. Jill Hall
$ 16,590
(Being amount collected and account written off)
Dec. 21
Accounts Receivables - Dr. Jill Hall
$ 12,580
Bad Debt Expense
$ 12,580
(Being account reinstated )
Cash
$ 12,580
Accounts Receivables - Dr. Jill Hall
$ 12,580
(Being Payment received)