Problem 4. On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for doubtful accounts
Question:
Problem 4. On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for doubtful accounts $10,000. Carly Company prepares financial statements annually. During the year the following selected transactions occurred.
Jan. 5 | Sold $12,000 of merchandise to Sam Company, terms n/30. |
Feb. 2 | Accepted a $12,000, 4-month, 10% promissory note from Sam Company for the balance due. |
12 | Sold $15,000 of merchandise to Neville Company and accepted Neville's $15,000, 2-month, 10% note for the balance due. |
Apr. 12 | Collected Neville Company note in full. |
June 2 | Collected Sam Company note in full. |
July 15 | Sold $11,000 of merchandise to Hutchinson Co. and accepted Hutchinson's $11,000, 3-month, 12% note for the amount due. |
Oct. 15 | Hutchinson Co.'s note was dishonored. Hutchinson Co. is bankrupt, and there is no hope of future settlement. |
Instructions
Journalize the transactions.
Financial Accounting
ISBN: 978-1259307959
4th edition
Authors: David Spiceland, Wayne Thomas, Don Herrmann