Jan. Sold merchandise on account to Black Tie Co., $28,000. The cost 21. of merchandise sold was $16,800. Mar. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on |аccount. 18. May Received from Black Tie Co. the amount due on the note of 17. March 18. June Sold merchandise on account to Pioneer Co. for $17,700. The cost of merchandise sold was $10,600. 15. 21. Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note. Received from Pioneer Co. the amount due on the invoice of 25. June 15. Received the interest due from JR Stutts and a new 60-day, 9% July note as a renewal of the loan of June 21. (Record both the debit 21. and the credit to the notes receivable account.) Sept. Received from JR Stutts the amount due on her note of July 21. 19. Sold merchandise on account to Wycoff Co., $20,000. The cost of merchandise sold was $12,000. 22. Oct. Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on 14. асcount. Nov. Wycoff Co. dishonored the note dated October 14. 13. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity Dec. 28. value of the note.

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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Question

Sales and notes receivable transactions
The following were selected from among the transactions completed
during the current year by Danix Co., an appliance wholesale company:

 

Instructions

Journalize the entries to record the transactions.

Jan. Sold merchandise on account to Black Tie Co., $28,000. The cost
21.
of merchandise sold was $16,800.
Mar. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on
|аccount.
18.
May Received from Black Tie Co. the amount due on the note of
17.
March 18.
June Sold merchandise on account to Pioneer Co. for $17,700. The
cost of merchandise sold was $10,600.
15.
21.
Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note.
Received from Pioneer Co. the amount due on the invoice of
25.
June 15.
Received the interest due from JR Stutts and a new 60-day, 9%
July
note as a renewal of the loan of June 21. (Record both the debit
21.
and the credit to the notes receivable account.)
Sept.
Received from JR Stutts the amount due on her note of July 21.
19.
Sold merchandise on account to Wycoff Co., $20,000. The cost of
merchandise sold was $12,000.
22.
Oct. Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on
14.
асcount.
Nov.
Wycoff Co. dishonored the note dated October 14.
13.
Received from Wycoff Co. the amount owed on the dishonored
note, plus interest for 45 days at 8% computed on the maturity
Dec.
28.
value of the note.
Transcribed Image Text:Jan. Sold merchandise on account to Black Tie Co., $28,000. The cost 21. of merchandise sold was $16,800. Mar. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on |аccount. 18. May Received from Black Tie Co. the amount due on the note of 17. March 18. June Sold merchandise on account to Pioneer Co. for $17,700. The cost of merchandise sold was $10,600. 15. 21. Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note. Received from Pioneer Co. the amount due on the invoice of 25. June 15. Received the interest due from JR Stutts and a new 60-day, 9% July note as a renewal of the loan of June 21. (Record both the debit 21. and the credit to the notes receivable account.) Sept. Received from JR Stutts the amount due on her note of July 21. 19. Sold merchandise on account to Wycoff Co., $20,000. The cost of merchandise sold was $12,000. 22. Oct. Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on 14. асcount. Nov. Wycoff Co. dishonored the note dated October 14. 13. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity Dec. 28. value of the note.
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