On January 1, 2022, Ivanhoe Company had Accounts Receivable $126,400, Notes Receivable $45,600, and Allowance for Doubtful Accounts $34,600. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2021. Ivanhoe Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 20 Feb. 18 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $40,700 of merchandise to Sheldon Company, terms n/15. Accepted Sheldon Company's $40,700, 3-month, 8% note for balance due. Sold $29,800 of merchandise to Patwary Company and accepted Patwary's $29,800, 6-month, 9% note for the amount due. Collected Sheldon Company note in full. Received payment in full from Willingham Company on the amount due. Accepted Potter Inc.'s $25,600, 3-month, 7% note in settlement of a past-due balance on account. Received payment in full from Patwary Company on note due. The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. Sold $11,800 of merchandise to Stanbrough Company and accepted a $11,800, 6-month, 10% note for the amount du Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered... procopted in the problem)
On January 1, 2022, Ivanhoe Company had Accounts Receivable $126,400, Notes Receivable $45,600, and Allowance for Doubtful Accounts $34,600. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2021. Ivanhoe Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 20 Feb. 18 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $40,700 of merchandise to Sheldon Company, terms n/15. Accepted Sheldon Company's $40,700, 3-month, 8% note for balance due. Sold $29,800 of merchandise to Patwary Company and accepted Patwary's $29,800, 6-month, 9% note for the amount due. Collected Sheldon Company note in full. Received payment in full from Willingham Company on the amount due. Accepted Potter Inc.'s $25,600, 3-month, 7% note in settlement of a past-due balance on account. Received payment in full from Patwary Company on note due. The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. Sold $11,800 of merchandise to Stanbrough Company and accepted a $11,800, 6-month, 10% note for the amount du Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered... procopted in the problem)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 94PSB
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On January 1, 2022, Ivanhoe Company had Accounts Receivable $126,400, Notes Receivable $45,600, and Allowance for Doubtful
Accounts $34,600. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2021. Ivanhoe
Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.
Jan. 5
20
Feb. 18
Apr. 20
30
May 25
Aug. 18
25
Sept. 1
Sold $40,700 of merchandise to Sheldon Company, terms n/15.
Accepted Sheldon Company's $40,700, 3-month, 8% note for balance due.
Sold $29,800 of merchandise to Patwary Company and accepted Patwary's $29,800, 6-month, 9% note for the amount
due.
Collected Sheldon Company note in full.
Received payment in full from Willingham Company on the amount due.
Accepted Potter Inc.'s $25,600, 3-month, 7% note in settlement of a past-due balance on account.
Received payment in full from Patwary Company on note due.
The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sold $11,800 of merchandise to Stanbrough Company and accepted a $11,800, 6-month, 10% note for the amount due.
Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do
not indent manually. Record journal entries in the order presented in the problem.)
Date Account Titles and Explanation
Debit
Credit
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