On January 1, 2010, Furball Company had Accounts Receivable $98,000 and Allowance for Doubtful Accounts $8,100. Furball
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Jan. 5 Sold $10,800 of merchandise to Kandle Company, terms n/30.
Feb. 2 Accepted a $10,800, 4-month, 10% promissory note from Kandle Company for the balance due.
12 Sold $13,500 of merchandise to Lowe Company and accepted Lowe’s $13,500,
2-month, 10% note for the balance due.
26 Sold $7,000 of merchandise to Barrel Co., terms n/10.
Apr. 5 Accepted a $7,000, 3-month, 8% note from Barrel Co. for the balance due.
12 Collected Lowe Company note in full.
June 2 Collected Kandle Company note in full.
July 5 Barrel Co. dishonors its note of April 5. It is expected that Barrel will eventually pay the amount owed.
15 Sold $12,000 of merchandise to Bushel Co. and accepted Bushel’s $12,000, 3-month,
12% note for the amount due.
Oct. 15 Bushel Co.’s note was dishonored. Bushel Co. is bankrupt, and there is no hope of future settlement. Instructions
Journalize the transactions.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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