Journalize the Following Transactions for the Computer Store

question 123

Essay

Journalize the following transactions for The Computer Store. The Computer Store uses the allowance method of accounting for uncollectible receivables.
April 5 The Computer Store sells $3,200 of computer equipment on account to Jane Doe.
June 5 Jane Doe pays The Computer Store $2,000 of the amount she owes.
July 7 After repeated attempts to collect the balance due from Jane Doe fail, The Computer Store writes-off the remainder of the amount she owes.

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Definitions:

Profit Centre

A business unit or department within an organization that is responsible for generating its own revenue and profit.

Cost-Plus Transfer Price

A pricing method where the selling price of a product is determined by adding a specific markup to the product's cost.

Market-Price Transfer

A pricing method used in transactions between divisions of the same company, based on prevailing market prices.

Durian Juice Concentrate

A thick, reduced extract of durian fruit, used as a base for beverages, flavoring, or food products.