Pharoah Supply Co. has the following transactions: Nov. 1 Loaned $69,600 cash to A. Morgan on a one-year, 9% note. 15 Sold goods to H. Giorgi on account for $12,000, terms n/30. The goods cost Pharoah $7,500. Pharoah uses the perpetual inventory system. Dec. 1 Sold goods to Wrightman, Inc., receiving a $21,600, three-month, 7% note. The goods cost Pharoah $14,400. 15 H. Giorgi was unable to pay her account. Giorgi gave Pharoah a six-month, 8% note in settlement of her account. 31 Accrued interest revenue on all notes receivable. Interest is due at maturity. Mar. 1 Collected the amount owing on the Wrightman note. June 15 H. Giorgi defaulted on the note. Future payment is expected.

1,Record the transactions for Pharoah Supply Co. Pharoah Supply Co. has no stated return policy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(Lend cash in exchange for a note.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(To record sales on account.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(To record cost of goods sold.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(To record sales in exchange for a note receivable.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(To record cost of goods sold.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(Accept note for accounts receivable.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(Accrue interest earned.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(To record collection of note receivable and interest.)

Nov. 1Nov. 15Dec. 1Dec. 15Dec. 31Mar. 1June 15

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

Accounts Receivable - MorganAccounts Receivable - GiorgiCashCost of Goods SoldInterest ReceivableInterest RevenueMerchandise InventoryNotes Receivable - MorganNotes Receivable - WrightmanNotes Receivable - GiorgiNo EntrySales

(To record dishonouring of note where collection is expected.)