Question
Quality Recliner Chairs completed the following selected transactions 2018 Jul. 1 Sold merchandise inventory to Go-Mart, receiving a $42,000, nine-month, 8% note. Ignore Cost of
Quality Recliner Chairs completed the following selected transactions
2018 |
|
Jul. 1 | Sold merchandise inventory to Go-Mart, receiving a $42,000, nine-month, 8% note. Ignore Cost of Goods Sold. |
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Oct. 31 | Recorded cash sales for the period of $17,000. Ignore Cost of Goods Sold. |
Dec. 31 | Made an adjusting entry to accrue interest on the Go-Mart note. |
Dec. 31 | Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $14,600 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $11,200. |
2019 | |
Apr. 1 | Collected the maturity value of the Go-Mart note. |
Jun. 23 | Sold merchandise inventory to Ambiance, Corp., receiving a 60-day, 12% note for $6,000. Ignore Cost of Goods Sold. |
Aug. 22 | Ambiance, Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. |
Nov. 16 | Loaned $21,000 cash to Connely, Inc., receiving a 90-day, 10% note. |
Dec. 5 | Collected in full on account from Ambiance, Corp. |
Dec. 31 | Accrued the interest on the Connely, Inc. note. |
Record the transactions in the journal of Quality Recliner Chairs. Explanations are not required. (Round to the nearest dollar.) (Record debits first, then credits. Exclude explanations from journal entries. For notes stated in days, use a 365-day year.)
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