On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500. Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred:- **Jan. 5:** Sold $4,500 of merchandise to Rian Company, terms n/30.- **Feb. 2:** Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due.- **Feb. 12:** Sold $14,400 of merchandise to Cato Company and accepted Cato’s $14,400, 2-month, 10% note for the balance due.- **Feb. 26:** Sold $5,700 of merchandise to Malcolm Co., terms n/10.- **Apr. 5:** Accepted a $5,700, 3-month, 8% note from Malcolm Co. for balance due.- **Apr. 12:** Collected Cato Company note in full.- **June 2:** Collected Rian Company note in full.- **June 15:** Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due. This image appears to be a financial ledger detailing various transactions on specific dates. Below is a transcription of the data and a brief explanation of the organization and values:### Transactions:- **Jan. 5** - *Accounts Receivable*: 4500 - *Sales Revenue*: 4500- **Feb. 2** - *Notes Receivable*: 4500 - *Accounts Receivable*: 4500- **Feb. 12** - *Notes Receivable*: 14400 - *Accounts Receivable*: 14400- **Feb. 26** - *Accounts Receivable*: 5700 - *Sales Revenue*: 5700- **Apr. 5** - *Notes Receivable*: 5700 - *Accounts Receivable*: 5700- **Apr. 12** - *Cash*: 14640 - *Notes Receivable*: 14400 - *Interest Revenue*: 240- **June 2** - *Cash*: 4650 - *Notes Receivable*: 4500 - *Interest Revenue*: 150- **June 15** - *Notes Receivable*: 2100 - *Accounts Receivable*: 2100### Explanation:This ledger is organized by date, listing financial activities, specifically involving accounts receivable, notes receivable, cash, sales revenue, and interest revenue. Each transaction has corresponding debit and credit entries, indicating the flow of money and adjustments in accounts over time. This kind of record helps in tracking financial performance and ensuring accurate accounting records.

Journal entries are those entires which are used to record the transactions of the business in the…

On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500. Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $4,500 of merchandise to Rian Company, terms n/30. Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due. Sold $14,400 of merchandise to Cato Company and accepted Cato's $14,400, 2-month, 10% note for the balance due. Sold $5,700 of merchandise to Malcolm Co., terms n/10. Accepted a $5,700, 3-month, 8% note from Malcolm Co. for balance due. Feb. 2 12 26 Apr. 5 12 Collected Cato Company note in full. June 2 Collected Rian Company note in full. 15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.

On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500. Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $4,500 of merchandise to Rian Company, terms n/30. Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due. Sold $14,400 of merchandise to Cato Company and accepted Cato's $14,400, 2-month, 10% note for the balance due. Sold $5,700 of merchandise to Malcolm Co., terms n/10. Accepted a $5,700, 3-month, 8% note from Malcolm Co. for balance due. Feb. 2 12 26 Apr. 5 12 Collected Cato Company note in full. June 2 Collected Rian Company note in full. 15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.

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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