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P9-7A Prepare entries for various receivable transactions . (LO 1, 2, 3, 4) On January 1, 2017, Harter Company had Accounts Receivable $139,000, Notes Receivable
P9-7A
Prepare entries for various receivable transactions.
(LO 1, 2, 3, 4)
On January 1, 2017, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2016. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.
Jan. | 5 | Sold $20,000 of merchandise to Sheldon Company, terms n/15. |
20 | Accepted Sheldon Company's $20,000, 3-month, 8% note for balance due. | |
Feb. | 18 | Sold $8,000 of merchandise to Patwary Company and accepted Patwary's $8,000, 6-month, 9% note for the amount due. |
Apr. | 20 | Collected Sheldon Company note in full. |
30 | Received payment in full from Willingham Company on the amount due. | |
May | 25 | Accepted Potter Inc.'s $6,000, 3-month, 7% note in settlement of a past-due balance on account. |
Aug. | 18 | Received payment in full from Patwary Company on note due. |
25 | The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. | |
Sept. | 1 | Sold $12,000 of merchandise to Stanbrough Company and accepted a $12,000, 6-month, 10% note for the amount due. |
Instructions
Journalize the transactions.
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