Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 9, Problem 9.6BPR
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:
Jan. 21. Sold merchandise on account to Black Tie Co., $28,000. The cost of merchandise sold was $16,800.
Mar. 18. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on account.
May 17. Received from Black Tie Co. the amount due on the note of March 18.
June 15. Sold merchandise on account to Pioneer Co. for $17,700. The cost of merchandise sold was $10,600.
21. Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note.
25. Received from Pioneer Co. the amount due on the invoice of June 15, less 1% discount.
July 21. Received the interest due from JR Stutts and a new 60-day, 9% note as a renewal of the loan of June 21. (Record both the debit and the credit to the notes
Sept.19. Received from JR Stutts the amount due on her note of July 21.
22. Sold merchandise on account to Wycoff Co., $20,000. The cost of merchandise sold was $12,000.
Oct. 14. Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on account.
Nov. 13. Wycoff Co. dishonored the note dated October 14.
Dec. 28. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity value of the note.
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Sales and notes receivable transactionsThe following were selected from among the transactions completedduring the current year by Danix Co., an appliance wholesale company:
Instructions
Journalize the entries to record the transactions.
Instructions
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar.
Apr.
Jun.
Jul.
Aug.
Dec.
1 Purchased merchandise on account from Kirkwood Co., $390,000, terms n/30.
31
Issued a 30-day, 10% note for $390,000 to Kirkwood Co., on account.
30
Paid Kirkwood Co. the amount owed on the note of March 31.
1
Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 8% note.
1 Purchased tools by issuing a $216,000, 60-day note to Poulin Co., which discounted the note at
the rate of 6%.
16
15 Paid Triple Creek Bank the amount due on the note of July 16.
30
Paid Poulin Co. the amount due on the note of July 1.
1 Purchased equipment from Greenwood Co. for $500,000, paying $150,000 cash and issuing a
series of ten 8% notes for $35,000 each, coming due at 30-day intervals.
Settled a product liability lawsuit with a customer for $310,000, payable in January. Accrued the
loss in a litigation claims payable account.
Paid the amount due…
Mani
Chapter 9 Solutions
Accounting (Text Only)
Ch. 9 - What are the three classifications of receivables?Ch. 9 - Dans Hardware is a small hardware store in the...Ch. 9 - What kind of an account (asset, liability, etc.)...Ch. 9 - After the accounts are adjusted and closed at the...Ch. 9 - A firm has consistently adjusted its allowance...Ch. 9 - Which of the two methods of estimating...Ch. 9 - Neptune Company issued a note receivable to...Ch. 9 - If a note provides for payment of principal of...Ch. 9 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 9 - The note receivable dishonored in Discussion...
Ch. 9 - Prob. 9.1APECh. 9 - Direct write-off method Journalize the following...Ch. 9 - Allowance method Journalize the following...Ch. 9 - Allowance method Journalize the following...Ch. 9 - Percent of sales method At the end of the current...Ch. 9 - Percent of sales method At the end of the current...Ch. 9 - Analysis of receivables method At the end of the...Ch. 9 - Analysis of receivables method At the end of the...Ch. 9 - Note receivable Guzman Company received a 60-day,...Ch. 9 - Note receivable Prefix Supply Company received a...Ch. 9 - Prob. 9.6APECh. 9 - Prob. 9.6BPECh. 9 - Prob. 9.1EXCh. 9 - Nature of uncollectible accounts MGM Resorts...Ch. 9 - Entries for uncollectible accounts, using direct...Ch. 9 - Entries for uncollectible receivables, using...Ch. 9 - Entries to write off accounts receivable Creative...Ch. 9 - Providing for doubtful accounts At the end of the...Ch. 9 - Number of days past due Toot Auto Supply...Ch. 9 - Aging of receivables schedule The accounts...Ch. 9 - Estimating allowance for doubtful accounts Waddell...Ch. 9 - Adjustment for uncollectible accounts Using data...Ch. 9 - Estimating doubtful accounts Selbys Bike Co. is a...Ch. 9 - Entry for uncollectible accounts Using the data in...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Effect of doubtful accounts on net income During...Ch. 9 - Effect of doubtful accounts on net income Using...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Determine due date and interest on notes Determine...Ch. 9 - Entries for notes receivable Master Designs...Ch. 9 - Entries for notes receivable The series of seven...Ch. 9 - Entries for notes receivable, including year-end...Ch. 9 - Entries for receipt and dishonor of note...Ch. 9 - Entries for receipt and dishonor of notes...Ch. 9 - Prob. 9.25EXCh. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Prob. 9.27EXCh. 9 - Prob. 9.28EXCh. 9 - Prob. 9.29EXCh. 9 - Entries related to uncollectible accounts The...Ch. 9 - Aging of receivables; estimating allowance for...Ch. 9 - Compare two methods of accounting for...Ch. 9 - Details of notes receivable and related entries...Ch. 9 - Notes receivable entries The following data relate...Ch. 9 - Sales and notes receivable transactions The...Ch. 9 - Entries related to uncollectible accounts The...Ch. 9 - Aging of receivables; estimating allowance for...Ch. 9 - Compare two methods of accounting for...Ch. 9 - Details of notes receivable and related entries...Ch. 9 - Notes receivable entries The following data relate...Ch. 9 - Sales and notes receivable transactions The...Ch. 9 - Prob. 9.1CPCh. 9 - Estimate uncollectible accounts For several years,...Ch. 9 - Prob. 9.3CPCh. 9 - Prob. 9.4CPCh. 9 - Accounts receivable turnover and days sales in...
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