Q1 : The following selected transactions relate to A Company.

Mar. 1 Sold $20,000 of merchandise to T Company, terms 2/10, n/30.

11 Received payment in full from T Company for balance due on existing accounts receivable.

12 Accepted B Companys $20,000, 6-month, 12% note for balance due.

13 Made A Company credit card sales for $13,200.

15 Made Visa credit card sales totaling $6,700. A 3% service fee is charged by Visa.

Apr. 11 Sold accounts receivable of $8,000 to H Factor. H Factor assesses a service charge of 2% of the amount of receivables sold.

May 10 Wrote off as uncollectible $16,000 of accounts receivable. A uses the percentage-of-sales basis to estimate bad debts.

June 30 Credit sales recorded during the first 6 months total $2,000,000. The bad debt percentage is 1% of credit sales. At June 30, the balance in the allowance account is $3,500 before adjustment.

July 16 One of the accounts receivable written off in May was from J. M, who pays the amount due, $4,000, in full.

Instructions Prepare the journal entries for the transactions. (Ignore entries for cost of goods sold.)

Q2- V Company had the following select transactions.

Apr. 1, 2017 Accepted G Companys 12-month, 12% note in settlement of a $30,000 account receivable.

July 1, 2017 Loaned $25,000 cash to T on a 9-month, 10% note.

Apr. 1, 2018 Received face value plus interest on the G note.

Apr. 1, 2018 T dishonored its note; V expects it will eventually collect.

Instructions Prepare journal entries to record the transactions. V prepares adjusting entries once a year on December 31.