Sullivan Equipment Sales showed the following. 2023 Jan. 15 Sold $25,000 of merchandise for $29,000 to JanCo; terms 3/5, n/15. 16 Wrote off Fedun's account in the amount of $15,000. 20 Collected the amount owing from the January 15 sale. 1 Accepted a $22,000, 60-day, 7% note dated this day in granting Parker Holdings a time extension on its past-due account. 15 Sold merchandise costing $62,000 for $71,000 to customers who used their Visa credit cards. Assume Visa charges a 1% fee and deposits the cash electronically into the retailer's account immediately at the time of sale. ?Parker Holdings honoured the note dated March 1. Mar. Apr. Nov. Dec. Mar. 1 Accepted a $24,000, three-month, 6% note dated this day in granting Grant Company a time extension on its past-due account. 31 Sullivan's year-end. Interest was accrued on outstanding notes receivable. 31 Bad debts are based on an aging analysis that estimated $9,700 of accounts receivable are uncollectible. Allowance for Doubtful Accounts showed an unadjusted credit balance of $1,600 on this date. 2024 ? Grant Company dishonoured its note dated November 1, 2023. 5 Recovered $1,500 from Derek Holston that was previously written off. 14 Wrote off the Grant Company account. Required: a. Determine the maturity dates of the March 1 and November 1 notes. Date of Note March 1 November 1 Maturity Date b. Prepare entries as appropriate for each date. (Round the final answers to 2 decimal places. Use 365 days a year.) View transaction list
Sullivan Equipment Sales showed the following. 2023 Jan. 15 Sold $25,000 of merchandise for $29,000 to JanCo; terms 3/5, n/15. 16 Wrote off Fedun's account in the amount of $15,000. 20 Collected the amount owing from the January 15 sale. 1 Accepted a $22,000, 60-day, 7% note dated this day in granting Parker Holdings a time extension on its past-due account. 15 Sold merchandise costing $62,000 for $71,000 to customers who used their Visa credit cards. Assume Visa charges a 1% fee and deposits the cash electronically into the retailer's account immediately at the time of sale. ?Parker Holdings honoured the note dated March 1. Mar. Apr. Nov. Dec. Mar. 1 Accepted a $24,000, three-month, 6% note dated this day in granting Grant Company a time extension on its past-due account. 31 Sullivan's year-end. Interest was accrued on outstanding notes receivable. 31 Bad debts are based on an aging analysis that estimated $9,700 of accounts receivable are uncollectible. Allowance for Doubtful Accounts showed an unadjusted credit balance of $1,600 on this date. 2024 ? Grant Company dishonoured its note dated November 1, 2023. 5 Recovered $1,500 from Derek Holston that was previously written off. 14 Wrote off the Grant Company account. Required: a. Determine the maturity dates of the March 1 and November 1 notes. Date of Note March 1 November 1 Maturity Date b. Prepare entries as appropriate for each date. (Round the final answers to 2 decimal places. Use 365 days a year.) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Rr.7
Transcribed Image Text:Sullivan Equipment Sales showed the following.
2023
Jan. 15 Sold $25,000 of merchandise for $29,000 to JanCo; terms 3/5, n/15.
16 Wrote off Fedun's account in the amount of $15,000.
20 Collected the amount owing from the January 15 sale..
Mar.
1 Accepted a $12,000, 60-day, 7% note dated this day in granting Parker Holdings a time extension on its past-due account.
Apr. 15 Sold merchandise costing $62,000 for $71,000 to customers who used their Visa credit cards. Assume Visa charges a 1% feel
and deposits the cash electronically into the retailer's account immediately at the time of sale.
?Parker Holdings honoured the note dated March 1.
Nov. 1 Accepted a $24,000, three-month, 6% note dated this day in granting Grant Company a time extension on its past-due
account.
Dec. 31 Sullivan's year-end. Interest was accrued on outstanding notes receivable.
31 Bad debts are based on an aging analysis that estimated $9,700 of accounts receivable are uncollectible. Allowance for
Doubtful Accounts showed an unadjusted credit balance of $1,600 on this date.
Mar.
2024
? Grant Company dishonoured its note dated November 1, 2023.
5 Recovered $1,500 from Derek Holston that was previously written off.
14 Wrote off the Grant Company account.
Required:
a. Determine the maturity dates of the March 1 and November 1 notes.
Date of Note
March 1
November 1
Maturity Date
b. Prepare entries as appropriate for each date. (Round the final answers to 2 decimal places. Use 365 days a year.)
View transaction list
Transcribed Image Text:b. Prepare entries as appropriate for each date. (Round the final enswers to 2 decimal places. Use 365 days a year.)
View transaction fist
Journal entry worksheet
Note Enter debits before credes
Transactions
a
4
Record the credit sales; terms 3/5, 1/15.
Record entry
6
General Journal
Clear entry
6
7
8.....
Debit
15
Credit
>
View general journal
Analysis Component:
Sullivan's receivable turnovers at December 31, 2023 and 2024 were 7 and 7.5, respectively. Select the correct option for whether the
change in the ratio for Sullivan was favourable or unfavourable.
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