Premium Chairs completed the following selected transactions: 

Record the transactions in the journal of Premium Chairs. Explanations are not required. (Round to the nearest dollar.)

Transcribed Image Text:

2025 Jul. 1 Oct. 31 Dec. 31 31 2026 Apr. 1 Jun. 23 Aug. 22 Nov. 16 Dec. 5 31 Sold merchandise inventory to Home Store, receiving a $37,000, nine-month, 8% note. Ignore Cost of Goods Sold. Recorded cash sales for the period of $19,000. Ignore Cost of Goods Sold. Made an adjusting entry to accrue interest on the Home Store note. Made an adjusting entry to record bad debts expense based on an aging of accounts receivable. The aging schedule shows that $14,100 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10,200. Collected the maturity value of the Home Store note. Sold merchandise inventory to Outdoor Furniture Corp., receiving a 60-day, 12% note for $7,000. Ignore Cost of Goods Sold. Outdoor Furniture Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Loaned $23,000 cash to Tucson, Inc., receiving a 90-day, 16% note. Collected in full on account from Outdoor Furniture Corp. Accrued the interest on the Tucson, Inc. note.