Journalize the Following Transactions for the Technology Store

question 130

Essay

Journalize the following transactions for The Technology Store. The Technology Store uses the direct write-off method of accounting for uncollectible receivables. Ignore Cost of Goods Sold. Explanations are not required.
April 5 The Technology Store sells $6,200 of computer equipment on account to Mrs. Jones.
June 5 Mrs. Jones pays The Technology Store $2,000 of the amount she owes.
July 7 After repeated attempts to collect the balance due from Mrs. Jones fail, The Technology Store writes-off the remainder of the amount she owes.

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Definitions:

Process Costing System

An accounting methodology that accumulates and assigns costs to large volumes of identical or similar units of output.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Journal Entry

A record in the accounting ledger that represents a single transaction and its effect on accounts.

Process Costing System

An accounting method used for homogenous products, allocating production costs based on the processes or departments through which the products pass.