Singer Corporation was involved in the following events in the current year:

June 30	Barney Manufacturing gives Singer a $5,000, 11%, 90-day note for merchandise purchased.
July 15	Dillon Construction Co. gives Singer a $6,000, 10%, 60-day note for merchandise originally purchased, on account, on April 20 of the current year.
30	The Barney and Dillon notes are sold with recourse by Singer at its bank at 12%. The estimated fair value of the recourse liability is $1,500.
Sept. 15	The bank notifies Singer that the Dillon note was paid.
30	The bank notifies Singer that Barney defaulted on the note and charges the amount of principal, interest, and a fee of $10 against Singers bank account.

	Required:
	Prepare the journal entries to record the preceding information on Singers accounting records. Assume that the company does not normally sell its notes. (Assume a 360-day year and round all answers to the nearest penny.)

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Chart of Accounts

CHART OF ACCOUNTS

Singer Corporation

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
125	Notes Receivable
126	Notes Receivable Dishonored
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
215	Recourse Liability
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income
603	Gain from Sale of Notes

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
601	Loss from Sale of Receivables
910	Income Tax Expense

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General Journal

Prepare the journal entries to record the given information on Singers accounting records. Assume that the company does not normally sell its notes. (Assume a 360-day year and round all answers to the nearest penny.)

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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Solution

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
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5
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9
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Points:

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Explanation