Passera Supply Co. has the following transactions: Nov. 1 Loaned $60,000 cash to A. Morgan on a
Question:
Passera Supply Co. has the following transactions:
Nov. 1 Loaned $60,000 cash to A. Morgan on a one-year, 8% note.
15 Sold goods to H. Giorgi on account for $12,000, terms n/30. Th e goods cost Passera $7,500. Passera uses the perpetual inventory system.
Dec. 1 Sold goods to Wrightman, Inc., receiving a $21,000, three-month, 6% note. Th e goods cost Passera $14,000.
15 H. Giorgi was unable to pay her account. Giorgi gave Passera a six-month, 7% note in settlement of her account.
31 Accrued interest revenue on all notes receivable. Interest is due at maturity.
Mar. 1 Collected the amount owing on the Wrightman note.
June 15 H. Giorgi defaults on the note. Future payment is expected.
Instructions
Record the transactions for Passera Supply Co. (Round calculations to the nearest dollar.)
Step by Step Answer:
Accounting Principles Part 2
ISBN: 978-1118306796
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow