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Instructions Chart of Accounts CHART OF ACCOUNTS Arizona Interiors Company General Ledger May 1. Sold merchandise on account to Taiwan Palace Co., $25,800. The cost of the merchandise sold was $15,300 Aug. 30. Received $10,900 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible. Dec. 8. Reinstated the account of Talwan Palace Co. that had been written off on August 30 and received $14,000 cash in full payment. REVENUE 410 Sales 610 Interest Revenue Required: Journalize the above transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. ASSETS 110 Cash 111 Patty Cash 121 Accounts Receivable-Taiwan Palace Co. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise 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 EXPENSES 510 Cost of Merchandise 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 Journal JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION PER DEBIT FREDIT ASSETS LIABILITIESQUITY 2 5

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