Quality

Recliner Chairs completed the following selected transactions:

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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.)Begin with the transactions for

2018.

Jul. 1: Sold inventory to

GreatMart,

receiving a

$45,000,

nine-month,

10%

note. Ignore Cost of Goods Sold.

Date			Accounts	Debit	Credit
2018
Jul. 1			Note ReceivableGreat-Mart	45,000
			Sales Revenue		45,000

Oct. 31: Recorded cash sales for the period of

$18,000.

Ignore Cost of Goods Sold.

Date			Accounts	Debit	Credit
2018
Oct. 31			Cash	18,000
			Sales Revenue		18,000

Dec.

31:

Made an adjusting entry to accrue interest on the

GreatMart

note.

Date			Accounts	Debit	Credit
2018
Dec. 31			Interest Receivable
			Interest Revenue

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2018
Jul.	1		Sold merchandise inventory to GreatMart, receiving a $45,000, nine-month, 10% note. Ignore Cost of Goods Sold.
Oct.	31		Recorded cash sales for the period of $18,000. Ignore Cost of Goods Sold.
Dec.	31		Made an adjusting entry to accrue interest on the GreatMart note.
	31		Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $14,900 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10,900.
2019
Apr.	1		Collected the maturity value of the GreatMart 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 $23,000 cash to Crenshaw, Inc., receiving a 90-day, 8% note.
Dec.	5		Collected in full on account from Ambiance, Corp.
	31		Accrued the interest on the Crenshaw, Inc. note.