Question

Prepare general journal entries without explanations to record the following transactions

Jan 1 Sold merchandise to Kelly Graham for $1,000 on account. The merchandise cost $600 and the company uses a perpetual inventory system and does not expect any returns

Feb 1 Received $300 from Graham

Jul 1 Wrote off the balance Graham's account as uncollectible

Sep 1 Unexpectedly received payment in full trom Graham

Answer 1

Date	General Journal		Debit	Credit
Jan-01	Accounts Receivable		$               1,000
	Sales			$           1,000
	(to record entry for sales of merchandise)
	Cost of goods sold		$                  600
	Merchandise Inventory			$              600
	(to record entry for cost of merchandise sold)
Feb-01	Cash		$                  300
	Accounts Receivable			$              300
	(to record entry for payment received from Graham)
Jul-01	Bad debt expense		$                  700
	Accounts Receivable			$              700
	(to record entry for amount due written off)
Sep-01	Accounts Receivable		$                  700
	Bad debt expense			$              700
	(to record entry for reversal of amounnt due)
Sep-01	Cash		$                  700
	Accounts Receivable			$              700
	(to record entry for recepit of payment in full)
	Note:Direct write off method is used, Alterantively Allowance method can also be used.