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Relaxing Recliner Chairs completed the following transactions: Required: Record the transactions in the journal of Relaxing Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.)

Relaxing Recliner Chairs completed the following transactions: Required: Record the transactions in the journal of Relaxing Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.)

FINANCIAL ACCOUNTING
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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Relaxing Recliner Chairs completed the following transactions:

Required: Record the transactions in the journal of Relaxing Recliner Chairs. Explanations are not
required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.)

Jul 1 Oct 31 Nov 3 Dec 31 2013 Sold inventory to Great–Mart, receiving a $45,000, nine-month, 12% note. Ignore cost of goods sold. Recorded credit- and debit-card sales for the period of $21,000 using the gross method. Card processor drafted company's checking account for processing fee of $410. Made an adjusting entry to accrue interest on the Great–Mart note. Made an adjusting entry to record uncollectible account expense based on an aging of accounts Dec 31 receivable. The aging schedule shows that $15,200 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for uncollectible accounts is $11,600. 2014 Apr 1 Jun 23 Sold merchandise to Ambiance, Corp., receiving a 60-day, 9% note for $13,000. Ignore cost of goods Collected the maturity value and interest of the Great–Mart note. sold. Aug 23 | Collected in full on account from Ambiance, Corp. Nov 16 | Loaned $21,000 cash to Creed, Inc., receiving a 90-day, 8% note. Dec 31 | Accrued the interest on the Creed, Inc., note.
Transcribed Image Text:Jul 1 Oct 31 Nov 3 Dec 31 2013 Sold inventory to Great–Mart, receiving a $45,000, nine-month, 12% note. Ignore cost of goods sold. Recorded credit- and debit-card sales for the period of $21,000 using the gross method. Card processor drafted company's checking account for processing fee of $410. Made an adjusting entry to accrue interest on the Great–Mart note. Made an adjusting entry to record uncollectible account expense based on an aging of accounts Dec 31 receivable. The aging schedule shows that $15,200 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for uncollectible accounts is $11,600. 2014 Apr 1 Jun 23 Sold merchandise to Ambiance, Corp., receiving a 60-day, 9% note for $13,000. Ignore cost of goods Collected the maturity value and interest of the Great–Mart note. sold. Aug 23 | Collected in full on account from Ambiance, Corp. Nov 16 | Loaned $21,000 cash to Creed, Inc., receiving a 90-day, 8% note. Dec 31 | Accrued the interest on the Creed, Inc., note.
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