May24Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000. Sept.30Received $6,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible.
Dec.7Reinstated the account of Old Town Cafe that had been written off on September 30 and received $12,450 cash in full payment.
Journalize the above transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zippy Interiors Company
General Ledger
ASSETS
110Cash
111Petty Cash
121Accounts Receivable-Old Town Cafe
129Allowance for Doubtful Accounts
131Interest Receivable
132Notes Receivable
141Inventory
145Office Supplies
146Store Supplies
151Prepaid Insurance
181Land
191Store Equipment
192Accumulated Depreciation-Store Equipment
193Office Equipment
194Accumulated Depreciation-Office Equipment
LIABILITIES
210Accounts Payable
211Salaries Payable
213Sales Tax Payable
214Interest Payable
215Notes Payable
EQUITY
310Common Stock
311Retained Earnings
312Dividends
313Income Summary
REVENUE
410Sales
610Interest Revenue
EXPENSES
510Cost of Goods Sold
520Sales Salaries Expense
521Advertising Expense
522Depreciation Expense-Store Equipment
523Delivery Expense
524Repairs Expense
529Selling Expenses
530Office Salaries Expense
531Rent Expense
532Depreciation Expense-Office Equipment
533Insurance Expense
534Office Supplies Expense
535Store Supplies Expense
536Credit Card Expense
537Cash Short and Over
538Bad Debt Expense
539Miscellaneous Expense
710Interest Expense
Journalize the transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.
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