Required
Prepare General Journal entries to record the following transactions of Billington Company.
2015
Jan. 10, Accepted a $3,000, 60-day, 6% note dated this day in granting a time extension on the past-due account of David Huerta.
Mar. 14, David Huerta dishonoured his note when presented for payment.
19, Accepted a $2,100, 90-day, 5% note dated this day in granting a time extension on the past-due account of Rose Jones.
28, Discounted the Rose Jones note at the bank at 8%.
Jun. 20, Received word from the bank that the Rose Jones note had been paid.
27, Accepted $700 in cash and a $1,300, 60-day, 6% note dated this day in granting a time extension on the past-due account of Jake Thomas.
July 24, Discounted the Jake Thomas note at the bank at 7%.
Aug. 29, The Jake Thomas note was dishonoured. Paid the bank the maturity of the note plus a $10 fee
Sept. 4, Accepted a $1,500, 60-day, 5.5% note dated this day in granting a time extension on the past-due account of Ginnie Bauer.
Oct. 13, Discounted the Ginnie Bauer note at the bank at 7%.
Nov. 6, The Ginnie Bauer note was dishonoured. Paid the bank the maturity value of the note plus a $10 fee
Dec. 6, Received payment from Ginnie Bauer of the maturity value of her dishonoured note, the fee, and interest at 5.5% on both for 30 days beyond maturity.
28, Decided the accounts of David Huerta and Jake Thomas were uncollectible and wrote them off against Allowance for Doubtful Accounts.