Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2016 Jul. 1 Sold merchandise inventory to Go - Mart, receiving a $45,000, nine-month, 8% note. Ignore Cost of Goods Sold. Oct. 31 Recorded credit

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
2016 Jul. 1 Sold merchandise inventory to Go - Mart, receiving a $45,000, nine-month, 8% note. Ignore Cost of Goods Sold. Oct. 31 Recorded credit and debit card sales for the period of $22,000. Use the gross method. Ignore Cost of Goods Sold. Nov. 3 Card processor drafted company's checking account for processing fee of $490. Dec. 31 Made an adjusting entry to accrue interest on the Go - Mart note. 31 Made an adjusting entry to record bad debts expense based on an aging of accounts receivable. The aging schedule shows that $13,800 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10,900. 2017 Apr. 1 Collected the maturity value of the Go - Mart note. Jun. 23 Sold merchandise inventory to Allure Company, receiving a 60-day, 6% note for $10,000. Ignore Cost of Goods Sold. Aug. 22 Allure Company dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Nov. 16 Loaned $23,000 cash to Creed Company receiving a 90-day, 16% note. Dec. 5 Collected in full on account from Allure Company. 31 Accrued the interest on the Creed Company note. Relaxing Recliner Chairs completed the following selected transactions: click the icon to view the transactions.) Record the transactions in the journal of Relaxing Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Roundt dollar.) (Record debits first, then credits. Exclude explanations from journal entries. Check your spelling carefully and do not abbreviate except with respe creditor's name. Distinguish between creditor accounts by entering names exactly as it is presented in the problem data. For example: Notes Receivable Begin with the transactions for 2016 Jul. 1: Sold merchandise inventory to Go-Mart, receiving a $45,000, nine-month, 8% note. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit 2016 Jul. 1 Oct. 31: Recorded credit and debit card sales for the period of $22,000. Use the gross method. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit 2016 Oct 31 Nov. 3: Card processor drafted company's checking account for processing fee of $490 Date Accounts and Explanation Debit Credit 2016 Nov. 3 Dec. 31: Made an adjusting entry to accrue interest on the Go - Mart note. Date Accounts and Explanation Debit Credit 2016 Dec. 31 Dec. 31: Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $13,800 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10,900 Date Accounts and Explanation Debit Credit 2016 Dec 31 Now record the transactions for 2017 Apr. 1: Collected the maturity value of the Go - Mart note. Date Accounts and Explanation Debit Credit 2017 Apr 1 Jun. 23: Sold merchandise inventory to Allure Company receiving a 60-day, 6% note for $10,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit 2017 Jun 23 Aug. 22: Allure Company dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Date Accounts and Explanation Debt Credit 2017 Aug. 22 Nov. 16: Loaned $23,000 cash to Creed Company receiving a 90-day, 16% note. Date Accounts and Explanation Debit Credit 2017 Nov. 16 Dec. 5: Collected in full on account from Allure Company. Date Accounts and Explanation Debie Credit 2017 Dec. 5 Dec. 5: Collected in full on account from Allure Company Date Accounts and Explanation Debit Credit 2017 Dec. 5 Dec. 31: Accrued the interest on the Creed Company note. Date Accounts and Explanation Debit Credit 2017 Dec. 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Graham W. Cosserat, Neil Rodda

3rd Edition

0470319739, 9780470319734

More Books

Students also viewed these Accounting questions

Question

What are two important limitations of the Heckscher- Ohlin theory?

Answered: 1 week ago

Question

In which ways would you measure training success? Explain.

Answered: 1 week ago

Question

Evaluate Meyers and Browns approach to career development.

Answered: 1 week ago