Journalize the following transactions in the accounts of Sedona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

Journalize the following transactions in the accounts of Sedona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

May 1. Sold merchandise on account to Beijing Palace Co., $18,900. The cost of the merchandise sold was $11,200.

Aug. 30. Received $8,000 from Beijing Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible.

Dec. 8. Reinstated the account of Beijing Palace Co. that had been written off on  August 30 and received $10,900 cash in full payment.

Answer:

May 1 Accounts Receivable—Beijing Palace Co. 18,900

Sales18,900

1 Cost of Merchandise Sold 11,200

Merchandise Inventory11,200

 Aug. 30 Cash8,000

Allowance for Doubtful Accounts 10,900

Accounts Receivable—Beijing Palace Co. 18,900

 Dec. 8 Accounts Receivable—Beijing Palace Co. 10,900

Allowance for Doubtful Accounts10,900

8 Cash10,900

Accounts Receivable—Beijing Palace Co. 10,900