Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions Notes Receivable Discounting 1. Record the transactions in a general journal When required, enter amounts to the nearest cent. If an amount box does

image text in transcribed
image text in transcribed
Instructions Notes Receivable Discounting 1. Record the transactions in a general journal When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Marienau Suppliers had the following transactions: Mar. 1 Sold merchandise on account to G. Perez $5,000. 20 G. Perez gave a $5,000, 90-day, 6% note to extend time for payment. 30 G. Perez's note is discounted at Commerce Bank at a discount rate of 8%. Apr. 20 Received a $3,000, 60-day, 6% note from D. Larson in payment for sale of merchandise. May 5 D. Larson's note is discounted at Commerce Bank at a discount rate of 7%. June 19 D. Larson's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $40 bank fee. D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $40 bank fee, and interest at 6% July 31 on the maturity value plus the bank fee. SUTUCUons 30 G. Perez's note is discounted at Commerce Bank at a discount rate of 8%. Apr. 20 Received a $3,000, 60-day, 6% note from D. Larson in payment for sale of merchandise. May 5 D. Larson's note is discounted at Commerce Bank at a discount rate of 7%. June 19 D. Larson's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $40 bank fee. July 31 D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $40 bank fee, and interest at 6% on the maturity value plus the bank fee. Aug. 1 Sold merchandise on account to A. Bauer $5,600 12 A. Bauer paid $400 and gave a $5,200, 30-day, 5% note to extend time for payment. ept. 11 A. Bauer paid $400, plus interest, and gave a new $4,800, 60-day, 6% note to extend time for payment. 26 A. Bauer's note is discounted at Commerce Bank at a discount rate of 7.5%. lov. 10 A. Bauer's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $40 bank fee. bec. 15 A. Bauer's dishonored note is collected. Bauer pays Marienau the maturity value of the note, the $40 bank fee, and interest at 6% on the maturity value plus the bank fee

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_2

Step: 3

blur-text-image_3

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

Internal Audit In Higher Education

Authors: Alison Holmes, Sally Brown

1st Edition

0749433000, 978-0749433000

More Books

Students also viewed these Accounting questions

Question

3. Explain the forces that influence how people handle conflict

Answered: 1 week ago