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Please help me do this accounting exercise. Thank you so much. On January 1, 2020, Bayesian Company had Accounts Receivable 136,900, Notes Receivable 37,200, and
Please help me do this accounting exercise. Thank you so much.
On January 1, 2020, Bayesian Company had Accounts Receivable 136,900, Notes Receivable 37,200, and Allowance for Doubtful Accounts 27,100. The Notes Receivable account consists only of a note receivable from Montecarlo Company. It is a 4-month, 9% note dated December 31, 2019. Bayesian prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Feb. 18 Sold 21,200 of merchandise to Peabody Company and accepted Peabody's 21,200, 6-month, 7% note for the amount due. Apr. 30 Received payment in full from Montecarlo Company on the amount due. May 25 Accepted Hamilton Inc.'s 16,400, 3-month, 5% note in settlement of a past-due balance on account. Aug. 18 Received payment in full from Peabody on note due. Aug. 25 The Hamilton Inc. note was dishonored. Hamilton is not bankrupt; future payment is anticipated. Required: Journalize the transactions. (Note: Write no entry when no entry is required.) Debit Credit Date Feb. 18 Apr. 30 May 25 Aug. 18 Aug. 25Step by Step Solution
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