The following series of transactions occurred during 2020 and 2021 when Jenna Corp. sold merchandise To Rachel Lee. Jenna Corp's annual accounting period ends on December 31. Assume 28 days in the Month of February. 1-Oct-20 Sold $42,000 of merchandise (cost $35,000) to Rachel Lee, terms 1/15, n/45. 15-Nov-20 Rachel indicated she won't be able to pay the account until early next year. She agrees to change the account to a 120 day. 10% note receivable. 31-Dec-20 Prepared the adjusting entry to record accrued interest. 16-Mar-21Jenna receives a cheque from Rachel Lee for the maturity value of the note. 22-Mar-21Jenna receives notification that Rachel Lee's cheque is being returned for non- sufficient funds. 31-Dec-21Jenna decides to write off Rachel Lee's account as uncollectible. Jenna.uses the Allowance method of accounting for bad debts. Prepare Jenna Corp.'s journal entries to record the above transactions.

The following series of transactions occurred during 2020 and 2021 when Jenna Corp. sold merchandise To Rachel Lee. Jenna Corp's annual accounting period ends on December 31. Assume 28 days in the Month of February. 1-Oct-20 Sold $42,000 of merchandise (cost $35,000) to Rachel Lee, terms 1/15, n/45. 15-Nov-20 Rachel indicated she won't be able to pay the account until early next year. She agrees to change the account to a 120 day. 10% note receivable. 31-Dec-20 Prepared the adjusting entry to record accrued interest. 16-Mar-21Jenna receives a cheque from Rachel Lee for the maturity value of the note. 22-Mar-21Jenna receives notification that Rachel Lee's cheque is being returned for non- sufficient funds. 31-Dec-21Jenna decides to write off Rachel Lee's account as uncollectible. Jenna.uses the Allowance method of accounting for bad debts. Prepare Jenna Corp.'s journal entries to record the above transactions.

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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