On January 1, 2022, Sunland Company had Accounts Receivable of $54,800 and Allowance for Doubtful Accounts of $3,800. Sunland Company prepares financial statements annually. During the year, the following selected transactions occurred:Jan. 5 Sold $4,700 of merchandise to Rian Company, terms n/30.Feb. 2 Accepted a $4,700, 4-month, 9% promissory note from Rian Company for balance due.12 Sold $10,140 of merchandise to Cato Company and accepted Cato’s $10,140, 2-month, 10% note for the balance due.26 Sold $5,300 of merchandise to Malcolm Co., terms n/10.Apr. 5 Accepted a $5,300, 3-month, 8% note from Malcolm Co. for balance due.12 Collected Cato Company note in full.June 2 Collected Rian Company note in full.15 Sold $1,800 of merchandise to Gerri Inc. and accepted a $1,800, 6-month, 11% 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.)

Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…

Answered: On January 1, 2022, Sunland Company had…

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, 2022, Sunland Company had Accounts Receivable of $54,800 and Allowance for Doubtful Accounts of $3,800. Sunland Company prepares financial statements annually. During the year, the following selected transactions occurred:

Jan. 5		Sold $4,700 of merchandise to Rian Company, terms n/30.
Feb. 2		Accepted a $4,700, 4-month, 9% promissory note from Rian Company for balance due.
12		Sold $10,140 of merchandise to Cato Company and accepted Cato’s $10,140, 2-month, 10% note for the balance due.
26		Sold $5,300 of merchandise to Malcolm Co., terms n/10.
Apr. 5		Accepted a $5,300, 3-month, 8% note from Malcolm Co. for balance due.
12		Collected Cato Company note in full.
June 2		Collected Rian Company note in full.
15		Sold $1,800 of merchandise to Gerri Inc. and accepted a $1,800, 6-month, 11% 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.)

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