Accounting II Project Wendover Fashions The purpose of this problem is to combine concepts from different chapters into a single problem. Thus, you will find in this problem transactions for notes & interest, bad debts, merchandise inventory, plant assets, and accruals and deferrals. Lori Sweat owns Wondaye Fashions, a small and successful firm. She uses the allowance method for bad debts, FIFO valuation for its periodic merchandise inventory system, and the straight method to depreciate plant assets on a monthly basis. Relevant account balances as of December 1, 20X1, are as follows: Debit Account Allowance for Doubtful Accounts Accounts Payable Empire Company Livingston Company Jesse Zeli Directions: 1. Record the following selected transactions in a general journal 1 Credit $3,200 Dec. 1 Issued Check No. 110 to Black Company for a 9%, 120-day note due today. The face value of the note is $1,500. Received a 90-day, 8% note for $2,400 from Jed Kissell as partial payment 8 9 $350 950 on account 4 Purchased office equipment on credit from Modem Equipment Company For $1,800, plus freight charges of $95' and an installation charge of $ 180. The equipment purchased on December 4 was damaged in na process of installation. Issued Check No. 111 to Ms. Fixit Co. for the amount of the repair, $t55. 5 800 7 A note from Pat Sterns for $3,000 that was due today was dishonored When it was presented for payment. The 60-day note carried interest at 12%. Wrote off the account of Peg Fuller for $2,600. Purchased merchandise from Evans Company as follows: 1,200 units & $10; terms, 2/10,n/30. Issued Check No. 112 to pay Livingston Company the December 1 balance due, less a 1% discount. 16 17 10 12 11 Issued Check No. 113 to increase the petty cash fund by $200. Collected a 120-day, 11% note with a face value of $6,000 due today. 16 Sold an item of store equipment that cost $2,800 and had been depreciated through the end of November at the rate of $40 a month for a total depreciation of $1,920. Received cash of $790 for the sale. Borrowed $8,000 by issuing a 30-day, 8% note. Issued Check No. 114 to pay Empire Company for the December 1 balance.