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Problem 8 - 2 The Cascot Firm has the following transactions: Jan. 1 0 Sold merchandise to Lovely Firm in the amount of $ 7
Problem
The Cascot Firm has the following transactions:
Jan. Sold merchandise to Lovely Firm in the amount of $ Accepted a day, note.
Jan. Accepted a $day, note as a time extension on payment of a previous sale from the Phackson Firm.
Feb. Received payment on a previously granted note. The payment was $ which included $ of interest.
Feb. Received payment in full from the Jan. sale to the Lovely Firm.
Feb. The Phackson Firm dishonored the Jan note.
Oct. Wrote off the Phackson note as uncollectible.
Dec. Surprisingly received payment in full from the Phackson Firm. The payment equals the original maturity value of the note.
Required:
Assume the Cascot Firm uses the allowance method to write off accounts.
Prepare the general journal entries to record the transactions.
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