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Peroni Equipment Sales showed the following. 2020 Jan. 15 Sold $25,850 of merchandise for $30,700 to JanCo; terms 3/5, n/15. 16 Wrote off Feduns account
Peroni Equipment Sales showed the following.
2020 | ||
Jan. | 15 | Sold $25,850 of merchandise for $30,700 to JanCo; terms 3/5, n/15. |
16 | Wrote off Feduns account in the amount of $15,850. | |
20 | Collected the amount owing from the January 15 sale. | |
Mar. | 1 | Accepted a $12,340, 60-day, 7% note dated this day in granting Parker Holdings a time extension on its pastdue account. |
Apr. | 15 | Sold merchandise costing $62,850 for $72,700 to customers who used their Visa credit cards. Visa charges a 1% fee and deposits the cash electronically into the retailers account immediately at the time of sale. |
? | Parker Holdings honoured the note dated March 1. | |
Nov. | 1 | Accepted a $25,700, three-month, 6% note dated this day in granting Grant Company a time extension on its past-due account. |
Dec. | 31 | Sullivans year-end. Interest was accrued on outstanding notes receivable. |
31 | Bad debts are based on an aging analysis that estimated $9,700 of accounts receivable are uncollectible. Allowance for Doubtful Accounts showed an unadjusted credit balance of $1,685 on this date. | |
2021 | ||
? | Grant Company dishonoured its note dated November 1, 2020. | |
Mar. | 5 | Recovered $1,500 from Derek Holston that was previously written off. |
14 | Wrote off the Grant Company account. |
a. Determine the maturity dates of the March 1 and November 1 notes. b. Prepare entries as appropriate for each date. (Use 365 days an year.) c. Peronis receivable turnovers at December 31, 2020 and 2021 were 7 and 7.5, respectively. Select the correct option for whether the change in the ratio for Peroni was favourable or unfavourable?
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