On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for doubtful accounts $10,000. Carly Company prepares financial statements annually. During the year the following selected transactions occurred. Jan. 5Sold $12,000 of merchandise to Sam Company, terms n/30. Feb. 2Accepted a $12,000, 4-month, 10% promissory note from Sam Company for the balance due. 12Sold $15,000 of merchandise to Neville Company and accepted Neville's $15,000, 2-month, 10% note for the balance due. Apr. 12Collected Neville Company note in full.June 2Collected Sam Company note in full.July 15Sold $11,000 of merchandise to Hutchinson Co. and accepted Hutchinson's $11,000, 3-month, 12% note for the amount due. Oct. 15Hutchinson Co.'s note was dishonored. Hutchinson Co. is bankrupt, and there is no hope of future settlement.Instructions Journalize the transactions.

Given: Accounts receivable $109,000 doubtful accounts $10,000

Answered: merchandise to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for doubtful accounts $10,000. Carly Company prepares financial statements annually. During the year the following selected transactions occurred.

Jan. 5	Sold $12,000 of merchandise to Sam Company, terms n/30.
Feb. 2	Accepted a $12,000, 4-month, 10% promissory note from Sam Company for the balance due.
12	Sold $15,000 of merchandise to Neville Company and accepted Neville's $15,000, 2-month, 10% note for the balance due.
Apr. 12	Collected Neville Company note in full.
June 2	Collected Sam Company note in full.
July 15	Sold $11,000 of merchandise to Hutchinson Co. and accepted Hutchinson's $11,000, 3-month, 12% note for the amount due.
Oct. 15	Hutchinson Co.'s note was dishonored. Hutchinson Co. is bankrupt, and there is no hope of future settlement.

Instructions

Journalize the transactions.

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