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In: Accounting

Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $17,910. The cost of the goods...

Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $17,910. The cost of the goods sold was $9,920.
June 2 Received $4,670 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.
Oct. 23 Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $13,240 cash in full payment.

Journalize the above transactions in the accounts of Canyon River 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 ACCOUNTSCanyon River Medical Co.General Ledger

ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable-Dr. Kyle Norby
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
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 Canyon River 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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Solutions

Expert Solution

Date General Journal Debit (in $ ) Credit (in $ )
Jan-19 Accounts Receivable - Dr. Kyle Norby $ 17,910
               Sales $ 17,910
(To record the merchandise sold )
Jan-19 Cost of Merchandise Sold $ 9,920
               Merchandise Inventory $ 9,920
(To record the Cost of merchandise sold)
Jun-02 Cash $ 4,670
Bad Debt Expense
( $ 17,910 (-) $ 4,670
$ 13,240
               Accounts Receivable - Dr. Kyle Norby $ 17,910
(To record Uncollectible accounts)
Oct. 23 Accounts Receivable - Dr. Kyle Norby $ 13,240
                Bad Debt Expense $ 13,240
(To record the write -off for Uncollectible accounts)
Oct. 23 Cash $ 13,240
                 Accounts Receivable-Dr. Kyle Norby $ 13,240
(To record the Cash payment )

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