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Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following: Jan. 2 Sold $20,400
Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following:
Jan. 2 | Sold $20,400 of merchandise to Sapounas Company, terms n/30. The cost of the goods sold was $12,240. Schneider uses the perpetual inventory system. | |
Feb. 1 | Accepted a $20,400, five-month, 5% promissory note from Sapounas Company for the balance due. (See January 2 transaction.) Interest is payable at maturity. | |
15 | Sold $14,400 of merchandise costing $8,640 to Garrison Company and accepted Garrison's three-month, 5% note in payment. Interest is payable at maturity. | |
Mar. 15 | Sold $10,700 of merchandise to Hoffman Co., terms n/30. The cost of the merchandise sold was $6,420. | |
April 15 | Collected the amount owing from Hoffman Co. in full. | |
May 15 | Collected the Garrison note in full. (See February 15 transaction.) | |
31 | Accrued interest at year end. | |
July 1 | Sapounas Company dishonoured its note of February 1. The company is bankrupt and there is no hope of future settlement. | |
13 | Sold $6,000 merchandise costing $3,600 to Weber Enterprises and accepted Webers $6,000, three-month, 7% note for the amount due, with interest payable at maturity. | |
Oct. 13 | The Weber Enterprises note was dishonoured. (See July 13 transaction.) It is expected that Weber will eventually pay the amount owed. |
Record the above transactions. Assume Schneider Company has no stated return policy.
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