The Monica Company sells fertilizer and pesticides to wholesalers. The companys fiscal year-end is December 31. During 2018, the following transactions related to receivables occurred:

March 31 Sold merchandise to the Chandler Co. and accepted a $12,000 noninterest-bearing note with a discount rate of 10%. This $12,000 payment is due on March 31, 2019.

May 30 Transferred receivables of $100,000 to a factor without recourse. The factor charged The Monica Company a 2.5% finance charge on the receivables transferred. The sale criteria are met.

July 31 Sold merchandise to Gunther Corporation for $15,000 and accepted an 8%, 6-month note. 8% is an appropriate rate for this type of note.

Sept 30 Discounted the Gunther Corporation note at the bank. The banks discount rate is 12%. The note was discounted without recourse.

Dec. 1 Borrowed $400,000 from Janices Receivables at 9% interest and assigned $500,000 in accounts receivable as collateral. The Monica Company signed a promissory note. The interest is payable monthly. Additionally, The Monica Company was charged a finance fee equal to 1.5% of the accounts receivable assigned.

Required:

1. Prepare the necessary journal entries for The Monica Company for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold (Round all calculations to the nearest dollar).

2. Prepare any necessary adjusting entries at December 31, 2018 for The Monica Company. Adjusting entries are only recorded at year-end (Round all calculations to the nearest dollar).

Date	Account Description	Debit	Credit

The Monica Company sells fertilizer and pesticides to wholesalers. The companys fiscal year-end is December 31. During 2018, the following transactions related to receivables occurred: March 31 Sold merchandise to the Chandler Co. and accepted a $12,000 noninterest-bearing note with a discount rate of 10%. This $12,000 payment is due on March 31, 2019. May 30 Transferred receivables of $100,000 to a factor without recourse. The factor charged The Monica Company a 2.5% finance charge on the receivables transferred. The sale criteria are met. July 31 Sold merchandise to Gunther Corporation for $15,000 and accepted an 8%, 6-month note. 8% is an appropriate rate for this type of note. Sept 30 Discounted the Gunther Corporation note at the bank. The banks discount rate is 12%. The note was discounted without recourse. Dec. 1 Borrowed $400,000 from Janices Receivables at 9% interest and assigned $500,000 in accounts receivable as collateral. The Monica Company signed a promissory note. The interest is payable monthly. Additionally, The Monica Company was charged a finance fee equal to 1.5% of the accounts receivable assigned. Required: 1. Prepare the necessary journal entries for The Monica Company for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold (Round all calculations to the nearest dollar). 2. Prepare any necessary adjusting entries at December 31, 2018 for The Monica Company. Adjusting entries are only recorded at year-end (Round all calculations to the nearest dollar). Date Account Description Debit Credit