Prepare General Journal Entries for the Following Transactions of Viking

question 91

Essay

Prepare general journal entries for the following transactions of Viking Company,assuming they use the allowance method to account for uncollectible accounts.
$\begin{array}{|l|r|l|}\hline\text { Apr } & 1 & \text { Sold } \$ 2,500 \text { of merchandise to Arthur Co., receiving an } 8 \%, 90 \text {-day, } \$ 2,500 \text { note. } \\\hline & 15 & \text { Wrote off } \$ 1,500 \text { owed by Network Co. } \\\hline & 30 & \begin{array}{l}\text { Received a } \$ 6,000,5 \%, 30 \text {-day note receivable from Calvin Co. as exchange for } \\\text { its } \$ 6,000 \text { account receivable. }\end{array} \\\hline \text { May } & 30 & \text { The note received from Calvin on April } 30 \text { was collected in full. } \\\hline \text { June } & 30 & \text { Arthur Co. was unable to pay the note on the due date. } \\\hline \text { July } & 15 & \text { Network Co. paid } \$ 1,000 \text { of the amount written off on April } 15 .\\\hline\end{array}$

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Definitions:

Alphabetical Order

A method of sorting by arranging items according to the sequence of the letters in the English alphabet.

Accounts Payable

Liabilities or amounts owed by a business to its creditors or suppliers for goods or services that have been received but not yet paid for.

T Account

The simplest form of an account, which consists of an account title, a debit side, and a credit side.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left side in accounting records.