Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc.

Required:

On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used.

Quantum Solutions Company

General Ledger

ASSETS

110 Cash

111 Petty Cash

121 Accounts Receivable-Alliance Inc.

129 Allowance for Doubtful Accounts

131 Interest Receivable

132 Notes Receivable

141 Merchandise Inventory

145 Office Supplies

146 Store Supplies

151 Prepaid Insurance

181 Land

191 Store Equipment

192 Accumulated Depreciation-Store Equipment

193 Office Equipment

194 Accumulated Depreciation-Office Equipment

LIABILITIES

210 Accounts Payable

211 Salaries Payable

213 Sales Tax Payable

214 Interest Payable

215 Notes Payable

EQUITY

310 Owner, Capital

311 Owner, Drawing

312 Income Summary

REVENUE

410 Sales

610 Interest Revenue

EXPENSES

510 Cost of Merchandise Sold

520 Sales Salaries Expense

521 Advertising Expense

522 Depreciation Expense-Store Equipment

523 Delivery Expense

524 Repairs Expense

529 Selling Expenses

530 Office Salaries Expense

531 Rent Expense

532 Depreciation Expense-Office Equipment

533 Insurance Expense

534 Office Supplies Expense

535 Store Supplies Expense

536 Credit Card Expense

537 Cash Short and Over

538 Bad Debt Expense

539 Miscellaneous Expense

710 Interest Expense

On March 1, journalize the entry to record the write-off, assuming that thedirect write-off methodis used.

On March 1, journalize the entry to record the write-off, assuming that theallowance methodis used

__________________________________________________________________________________________________

Spring Designs & Decorators issued a 180-day, 7% note for $65,400, dated April 13 to Jaffe Furniture Company on account.

Determine the due date of the note.

Determine the maturity value of the note. Assume a 360-day year when calculating interest.

Journalize the entries to record the following: (1) receipt of the note by Jaffe Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.

Jaffe Furniture Company

General Ledger

ASSETS

110 Cash

111 Petty Cash

121 Accounts Receivable-Spring Designs & Decorators

129 Allowance for Doubtful Accounts

132 Notes Receivable

141 Merchandise Inventory

145 Office Supplies

146 Store Supplies

151 Prepaid Insurance

181 Land

191 Store Equipment

192 Accumulated Depreciation-Store Equipment

193 Office Equipment

194 Accumulated Depreciation-Office Equipment

LIABILITIES

210 Accounts Payable

211 Salaries Payable

213 Sales Tax Payable

214 Interest Payable

215 Notes Payable

EQUITY

310 Owner, Capital

311 Owner, Drawing

312 Income Summary

REVENUE

410 Sales

610 Interest Revenue

EXPENSES

510 Cost of Merchandise Sold

520 Sales Salaries Expense

521 Advertising Expense

522 Depreciation Expense-Store Equipment

523 Delivery Expense

524 Repairs Expense

529 Selling Expenses

530 Office Salaries Expense

531 Rent Expense

532 Depreciation Expense-Office Equipment

533 Insurance Expense

534 Office Supplies Expense

535 Store Supplies Expense

536 Credit Card Expense

537 Cash Short and Over

538 Bad Debt Expense

539 Miscellaneous Expense

710 Interest Expense

Determine the due date of the note.

Determine thematurity valueof the note. Assume a 360-day year when calculating interest.

Journalize the entry to record the receipt of the note by Jaffe Furniture.

Journalize the entry to record the receipt of payment of the note at maturity.

__________________________________________________________________________________________________________________

The following selected transactions were completed by Fasteners Inc. Co., a supplier of Fasteners Inc. Co.

20Y3

Nov. 21 Received from McKenna Outer Wear Co., on account, a $66,000, 60-day, 8% note dated November 21 in settlement of a past due account.

Dec. 31 Recorded an adjusting entry for accrued interest on the note of November 21.

20Y4

Jan. 20 Received payment of note and interest from McKenna Outer Wear Co.

Journalize the entries to record the transactions.

General Ledger

ASSETS

110 Cash

111 Petty Cash

121 Accounts Receivable-McKenna Outer Wear Co.

129 Allowance for Doubtful Accounts

131 Interest Receivable

132 Notes Receivable

141 Merchandise Inventory

145 Office Supplies

146 Store Supplies

151 Prepaid Insurance

181 Land

191 Store Equipment

192 Accumulated Depreciation-Store Equipment

193 Office Equipment

194 Accumulated Depreciation-Office Equipment

LIABILITIES

210 Accounts Payable

211 Salaries Payable

213 Sales Tax Payable

214 Interest Payable

215 Notes Payable

EQUITY

310 Owner, Capital

311 Owner, Drawing

312 Income Summary

REVENUE

410 Sales

610 Interest Revenue

EXPENSES

510 Cost of Merchandise Sold

520 Sales Salaries Expense

521 Advertising Expense

522 Depreciation Expense-Store Equipment

523 Delivery Expense

524 Repairs Expense

529 Selling Expenses

530 Office Salaries Expense

531 Rent Expense

532 Depreciation Expense-Office Equipment

533 Insurance Expense

534 Office Supplies Expense

535 Store Supplies Expense

536 Credit Card Expense

537 Cash Short and Over

538 Bad Debt Expense

539 Miscellaneous Expense

710 Interest Expense

buttons and zippers for clothing:

 

Journalize the entries to record the transactions for the year 2023.

 

 

Journalize the entries to record the transactions for the year 2024