College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter D, Problem 8P
Prepare entries in general journal form to record the following:
Aug. 6 Woodard Company failed to pay its 30-day, 5 percent note for $480, dated July 7. The note is thus dishonored at maturity.
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On January 1, Cooper Company accepted a one-year note for $5,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. Prepare the journal entry that Cooper will make to record the dishonored note. Omit explanation.
On January 1, Orange Corp. accepted a one-year note for $7,000 at 4% from one of its customers. When
the note matured on December 31, the customer was unable to pay, and the company treated it as a
dishonored note. The journal entry would be: A. Cash 7,280 Note Receivable Interest Revenue B. Accounts
Receivable Note Receivable Interest Revenue C. Bad Debts Expense Notes Receivable Interest Revenue D.
Accounts Receivable Notes Receivable 7,000 280 7,280 7,000 280 7,280 7,000 280 7,280 7,280
Timmons Company had a January 1 credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
Apr. 15
Bard’s account receivable of $5,700 was deemed un-collectable.
July 1
Drake paid the full amount of a previously written-off account receivable. This receivable of $2,300 had been written off in the prior year.
Dec. 31
Bad debts expense of $7,500 was recorded.
What amount should appear in the allowance for doubtful accounts in the December 31 balance sheet for the current year?
Chapter D Solutions
College Accounting (Book Only): A Career Approach
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- 111arrow_forwardon january 1, cooper company accepted a one-year note for $5,000 at 4% from one of its customers. when the note matured on december 31, the customer was unable to pay, and company treates it as a dishonored note. prepare the journal entry that cooper will make to record the dishonored note.arrow_forward(b) assuming Ringo does not make reversing entries, prepare the journal entry to record the payment of the note on April 1. On April 1, Ringo Company borrowed $20,000 from its bank by issuing a 9%, 12-month note, with the interest to be paid on the maturity date. Prepare journal entries to record the issuance of the note and the related year-end adjusting entry on December 31.arrow_forward
- Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above selected transactions of Dexter.arrow_forwardFollowing are transactions for Ridge Company. March 21 Accepted a $14,600, 180-day, 9% note from Tamara Jackson in granting a time extension on her past-due account receivable. September 17 Jackson dishonored her note. December 31 After trying several times to collect, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts. Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Use 360 days a year. Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at September 17. Total Through Principal Rate (%) Time Total interest Maturityarrow_forwardOn Aug 1, ABC received a 60 day, 10% note for 12,000 from McAnn’s Auto in settlement of an existing Accounts Receivable. On Oct 1, when asked to pay, McAnn Dishonored the Note. The Journal entry to record that the note was dishonored is:arrow_forward
- Following are transactions for Ridge Company. March 21 Accepted a $11,900, 180-day, 7 % note from Tamara Jackson in granting a time extension on her past-due account receivable. September 17 Jackson dishonored her note. December 31 After trying several times to collect, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts. Complete the table to calculate the Interest amounts at September 17 and use the calculated value to prepare your journal entries. Note: Do not round Intermediate calculations. Round your final answers to nearest whole dollar. Use 360 days a year. Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at September 17. Total Through Principal Maturity Rate (%) 7% Time 180/360 Total interest 4 General Journal >arrow_forwardAt year-end ( December 31)Chan Company estimates its bad debts as 1% of its annual credit sales of $487500Chan records its Bad Debts Expense for that estimate. On the following February 1Chan decides that the $580 account of P.Park is uncollectible and writes it off as a bad debt. On June 5. Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.arrow_forwardLinstrum Company received a 60-day, 9% note for $56,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTS Linstrum Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office…arrow_forward
- Linstrum Company received a 60-day, 9% note for $56,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Fill all…arrow_forwardSolstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $61,000 of its accounts receivable from its customer, P. Moore. On October 30, P. Moore unexpectedly pays his account in full to Solstice Company. Record Solstice's entries for recovery of this bad debt. View transaction list Journal entry worksheet Debit Credit >arrow_forwardAshavinarrow_forward
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