Midway Corporation has a six-month, $24,000, 3% note receivable from L. Summers that was signed on June 1, 2016. Summers defaults on the loan on December 1. Journalize the entry for Midway to record the default of the loan.
Answer to relevant QuestionsGold Clothiers reported the following selected items at September 30, 2016 (last year’s—2015—amounts also given as needed): Accounts Payable .......... $ 331,000 Cash ................. 302,900 Merchandise ...During August 2016, Ritter Company recorded the following: • Sales of $62,100 ($55,000 on account; $7,100 for cash). Ignore Cost of Goods Sold. • Collections on account, $37,800. • Write-offs of uncollectible ...On August 31, 2016, Lily Floral Supply had a $145,000 debit balance in Accounts Receivable and a $5,800 credit balance in Allowance for Bad Debts. During September, Lily made • Sales on account, $540,000. Ignore Cost of ...On August 31, 2016, Bouquet Floral Supply had a $170,000 debit balance in Accounts Receivable and a $6,800 credit balance in Allowance for Bad Debts. During September, Bouquet made the following transactions: • Sales on ...During its first year of operations, Signature Lamp Company earned net credit sales of $314,000. Industry experience suggests that bad debts will amount to 4% of net credit sales. At December 31, 2016, accounts receivable ...
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