Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
26th Edition
ISBN: 9781305714731
Author: Warren/Reeve/Duchac
Publisher: Cengage
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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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ournal Entries for Accounts and Notes ReceivableDallmus, Inc., began business on January 1. Several transactions for the year follow:
May 2
Received a $31,800, 60 day, ten percent note on account from the Haskins Company.
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Received payment from Haskins for its note plus interest.
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Received a $57,000, 120 day, ten percent note from R. Longo Company on account.
Oct.30
R. Longo failed to pay its note.
Dec.9
Wrote off R. Longo's account as uncollectible. Dallmus, Inc., uses the allowance method
of providing for credit losses.
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Received a $45,000, 90 day, nine percent note from R. Canal on account.
Dec.31
Recorded expected credit losses for the year by an adjusting entry. The Allowance for
Doubtful Accounts has a debit balance of $59,600 as a result of accounts written off during
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The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar.
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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.
Apr.
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Paid Kirkwood Co. the amount owed on the note of March 31.
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Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 8% note.
Jul.
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Purchased tools by issuing a $216,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16
Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $156,000. (Journalize both the debit and credit to the notes payable account.)
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Paid Triple Creek Bank the amount due on the note of July 16.
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Paid Poulin Co. the amount due on the note of July 1.
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Purchased equipment from Greenwood Co. for $500,000, paying $150,000 cash and issuing a series of ten 8%…
Notes Receivable Entries
J. K. Pratt Co. had the following transactions:
20-1
July 20
Received a $800, 30-day, 4% note from J. Akita in payment for sale of merchandise.
Aug. 19
J. Akita paid note issued July 20 plus interest.
25
Sold merchandise on account to L. Beene, $1,200.
Sept. 5
L. Beene paid $100 and gave a $1,100, 30-day, 4% note to extend time for payment.
Oct. 5
L. Beene paid note issued September 5, plus interest.
10
Sold merchandise to R. Harris for $750: $50 plus a $700, 30-day, 4% note.
Nov. 9
R. Harris paid $140 plus interest on note issued October 10 and extended the note ($560) for 30 days.
Dec. 9
R. Harris paid note extended on November 9, plus interest.
10
Sold merchandise on account to B. Kraus, $1,500.
15
B. Kraus paid $120 on merchandise purchased on account, and gave a $1,380, 30-day, 6% note to extend time for payment.
20-2
Jan. 14
B. Kraus's note of December 15 is dishonored.
Feb. 13
Collected B. Kraus's dishonored note, plus…
Chapter 9 Solutions
Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
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