ACCT1101 Introduction to Financial Accounting Discussion questions (Ex 9-9, Ex 9-10, Ex 9-11) Ex 9-9 Selling and pledging accounts receivable On June 30, Roman Co. has $125,900 of accounts receivable. Prepare journal entries to record the follow- ing selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.) July 4 Sold $6,295 of merchandise (that had cost $4,000) to customers on credit. 9 17 27 Ex 9-10 Honoring a note Prepare journal entries to record these selected transactions for Eduardo Company. Nov. 1 Dec. 31 Apr. 30 Chapter 9 Sold $18,000 of accounts receivable to Center Bank. Center charges a 4% factoring fee. Received $3,436 cash from customers in payment on their accounts. Borrowed $10,000 cash from Center Bank, pledging $13,000 of accounts receivable as security for the loan. Sept. 17 Dec. 31 Accepted a $5,000, 180-day, 6% note dated November 1 from Melosa Allen in granting a time extension on her past-due account receivable. Adjusted the year-end accounts for the accrued interest earned on the Allen note. Allen honors her note when presented for payment; February has 28 days for the current year. Ex 9-11 Dishonoring a note Prepare journal entries to record the following selected transactions of Paloma Company for 2015. Mar. 21 Accepted a $3,100, 180-day, 10% note dated March 21 from Salma Hernandez in granting a time extension on her past-due account receivable. Hernandez dishonors her note when it is presented for payment. After exhausting all legal means of collection, Paloma Company writes off Hernandez's account against the Allowance for Doubtful Accounts.

Ex 9-9 Selling and pledging accounts receivable On June 30, Roman Co. has $125,900 of accounts receivable. Prepare joumal entries to reoord the following selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.) July 4 Sold $6,295 of merchandise (that had cost $4,000 ) to customers on credit. 9 Sold $18,000 of accounts receivable to Center Bank. Center charges a 4% factoring fee. 17 Received $3,436 cash from customers in payment on their accounts. 27 Borrowed $10,000 eash from Center Bank, pledging $13,000 of accounts receivable as security for the loan. Ex 9-10 Honoring a note Prepare joumal entries to record these selected transactions for Eduardo Company. Nov. 1 Aecepted a \$5,000, 180-day, 6\% note dated November 1 from Melosa Allen in granting a time extension on her past-due sccount receivable. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the Allen note. Apt. 30 Allea honors her note when presented for payment; February has 28 days for the current year. Ex 9-11 Dishonoring a note Prepare journal entries to record the following selected transactions of Paloma Company for 2015. Mar. 21 Accepted a \$3,100, 180-day, 10\% note dated March 21 from Salma Hernandez in granting a time extension on her past-due account receivable. Sept. 17 Hemandez dishonors her note when it is presented for payment. Dec. 31 After exhausting all legal means of collection, Paloma Company writes off Hemandez's account against the Allowance for Doubtful Accounts