Relaxing Recliner Chairs completed the following selected transactions:
2011
Jul 1 Sold inventory to Great – Mart, receiving a $45,000, nine-month, 12% note. Ignore cost of goods sold.
Oct 31 Recorded credit- and debit-card sales for the period of $21,000. Nov 3 Card processor drafted company’s checking account for processing fee of $410.
Dec 31 Made an adjusting entry to accrue interest on the Great – Mart note.
31 Made an adjusting entry to record uncollectible account expense based on an aging of accounts receivable. The aging schedule shows that $15,200 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for uncollectible accounts is $11,600.
2012
Apr 1 Collected the maturity value of the Great – Mart note.
Jun 23 Sold merchandise to Ambiance, Corp., receiving a 60-day, 9% note for $13,000. Ignore cost of goods sold.
Aug 22 Ambiance, Corp., dishonored its note (failed to pay) at maturity; we converted the maturity value of the note to an account receivable.
Nov 16 Loaned $21,000 cash to Creed, Inc., receiving a 90-day, 8% note.
Dec 5 Collected in full on account from Ambiance, Corp.
31 Accrued the interest on the Creed, Inc., note.
Requirement
1. Record the transactions in the journal of Relaxing Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.)