Journalize the following entries for (1) the buyer and (2) the seller for 201X. Record all entries
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Question:
Journalize the following entries for (1) the buyer and (2) the seller for 201X. Record all entries for the buyer first.
| June 11 | LePorte Company sold $9,000 of merchandise on account to Ramsey Company. |
| July 11 | LePorte Company received a 90-day, $3,000, 16% note for a time extension of a past due account of Ramsey Company. |
| Oct. 9 | Collected the Ramsey Company note on the maturity date. |
| Oct. 9 | Assume Ramsey Company defaulted on its July 11 note and record the dishonored note. |
| Oct. 15 | Ramsey Company paid the note receivable that was dishonored on October 9 (no additional interest is charged). |
Expert Answer:
The buyer must record the inventory purchase and the related Accounts Payable as well the note issue... View the full answer
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