Question

On January 1, 2014, Morfitt Company had Accounts Receivable $98,000 and Allowance for Doubtful Accounts $8,100. Morfitt Company prepares financial statements annually.
During the year, the following selected transactions occurred.
Jan. 5 Sold $10,800 of merchandise to Motte Company, terms n/30.
Feb. 2 Accepted a $10,800, 4-month, 9% promissory note from Motte Company for the balance due.
12 Sold $13,500 of merchandise to Gitchel Company and accepted Gitchel’s $13,500, 2-month, 8% note for the balance due.
26 Sold $9,000 of merchandise to Benedict Co., terms n/10.
Apr. 5 Accepted a $9,000, 3-month, 8% note from Benedict Co. for the balance due.
12 Collected Gitchel Company note in full.
June 2 Collected Motte Company note in full.
July 5 Benedict Co. dishonors its note of April 5. It is expected that Benedict will eventually pay the amount owed.
15 Sold $12,000 of merchandise to Kriley Co. and accepted Kriley’s $12,000, 3-month, 12% note for the amount due.
Oct. 15 Kriley Co.’s note was dishonored. Kriley Co. is bankrupt, and there is no hope of future settlement.

Instructions
Journalize the transactions.



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  • CreatedJanuary 30, 2014
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