Question

May 24 Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000.

Sept. 30 Received $6,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible.
Dec. 7 Reinstated 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
110 Cash
111 Petty Cash
121 Accounts Receivable-Old Town Cafe
129 Allowance for Doubtful Accounts
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
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Sales Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Store Equipment
523 Delivery Expense
524 Repairs Expense
529 Selling Expenses
530 Office Salaries Expense
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Office Supplies Expense
535 Store Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Miscellaneous Expense
710 Interest 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.
How does grading work?
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JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
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2 ✔
3 ✔
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7 ✔
8 ✔ ✔
9 ✔
10✔
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Answer 1

Date General Ledger Debit Credit

May 24 Accounts Receivable-Old Town Café $18,450

Sales $18,450

Cost of goods sold $11,000

Inventory $11,000

Sept. 30 Cash $6,000

Allowance for Doubtful Accounts $12,450

Accounts Receivable-Old Town Cafe $18,450

Dec. 7 Accounts Receivable-Old Town Cafe $12,450

Allowance for Doubtful Accounts $12,450

Cash $12,450

Accounts Receivable-Old Town Cafe $12,450