Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 8, Problem 8.23E
Journalizing note receivable transactions
The following selected transactions occurred during 2016 and 2017 for Mediterranean Importers. The company ends its accounting year on April 30.
| 2016 | |
| Feb. 1 | Loaned $20,000 cash to Candace Smith on a one-year, 6% note. |
| Apr. 6 | Sold goods to Green Masters, receiving a 90-day, 9% note for $10,000. Ignore Cost of Goods Sold. |
| Apr. 30 | Made a single entry to accrue interest revenue on both notes. |
| ? | Collected the maturity value of the Green Masters note. |
| 2017 | |
| Feb. 1 | Collected the maturity value of the Smith note. |
Journalize all required entries. Make sure to determine the missing maturity date.
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Part A: Blue Blaze Company, whose fiscal year ends December 31, complete the following transactions involving notes payable:
2013
Nov. 25 Purchased a new loading cart by issuing a 60-day 10% note for $43,200.
Dec. 31 Made the year-end adjusting entry to accrue interest expense. (Round to the nearest cent.)
2014
Jan. 24 Paid off the loading cart note. (Round to the nearest cent.)
Usa the following for items 46 – 48
Clover Corporation provided for uncollectible accounts receivable under the allowance method since the start of
its operations to December 31, 2017. Provisions were made monthly at 2% of credit sales; bad debts written off
were charged to the allowance account; recoveries of bad debts previously written off were credited to the
allowance account; and no year-end adjustments to the allowance account were made. Clover Company's usual
credit terms are net 30 days.
The credit balance in the allowance for doubtful accounts was P260,000 at January 1, 2017. During 2017, credit
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bad debts were written off, and recoveries of accounts previously written off amounted to P30,000.
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Entries for notes receivable, including year-end entries
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
2017
December 7. Received from Unitarian Clothing & Bags Co., on account, a $75,000, 60-day, 3 % note dated December 7.
December 31. Recorded an adjusting entry for accrued interest on the note of December 7.
December 31. Recorded the closing entry for interest revenue.
2018
February 5. Received payment of note and interest from Unitarian Clothing & Bags Co.
Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.
2017, Dec. 7
Dec. 31
Dec. 31
2018, Feb. 5
Chapter 8 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 8 - Prob. 1QCCh. 8 - When recording credit card or debit card sales...Ch. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - At December 31 year-end, Crain Corporation has an...Ch. 8 - Using the data in the preceding question, what...Ch. 8 - At year-end, Schultz, Inc. has cash of 11,600,...Ch. 8 - Using the data in the preceding question, assume...
Ch. 8 - What is the difference between accounts receivable...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - When dealing with receivables, give an example of...Ch. 8 - What type of account must the sum of all...Ch. 8 - Prob. 6RQCh. 8 - What are two common methods used when accepting...Ch. 8 - What occurs when a business factors its...Ch. 8 - What occurs when a business pledges its...Ch. 8 - Prob. 10RQCh. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - When using the allowance method, how are accounts...Ch. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - How does the percent- of-sales method compute bad...Ch. 8 - How do the percent-of-receivables and aging-of-...Ch. 8 - What is the difference between the...Ch. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 8.1SECh. 8 - Prob. 8.2SECh. 8 - Applying the direct write-off method to account...Ch. 8 - Collecting a receivable previously written...Ch. 8 - Prob. 8.5SECh. 8 - Applying the allowance method (percent-of-sales)...Ch. 8 - Applying the allowance method...Ch. 8 - Prob. 8.8SECh. 8 - Prob. 8.9SECh. 8 - Accounting for a note receivable On June 6,...Ch. 8 - Prob. 8.11SECh. 8 - Recording a dishonored note receivable Midway...Ch. 8 - Prob. 8.13SECh. 8 - Defining common receivables terms Match the terms...Ch. 8 - Prob. 8.15ECh. 8 - Journalizing transactions using the direct...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Journalizing transactions using the direct...Ch. 8 - Journalizing credit card sales, note receivable...Ch. 8 - Journalizing note receivable transactions...Ch. 8 - Journalizing note receivable transactions The...Ch. 8 - Journalizing note receivable transactions Like New...Ch. 8 - Evaluating ratio data Chippewa Carpets reported...Ch. 8 - Prob. 8.26ECh. 8 - Prob. 8.27APCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Using ratio data to evaluate a companys financial...Ch. 8 - Prob. 8.34BPCh. 8 - Prob. 8.35BPCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Prob. 8.40BPCh. 8 - Prob. 8.41CPCh. 8 - Prob. 8.42PSCh. 8 - Prob. 8.1CTDCCh. 8 - Paulines Pottery has always used the direct...Ch. 8 - Prob. 8.1CTFCCh. 8 - Use Starbucks Corporations Fiscal 2013 Annual...
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