A. On February 5, 2015, Dappa Apparel sold merchandise to a customer, Susan Huang for $390,000,...

 

  

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A. On February 5, 2015, Dappa Apparel sold merchandise to a customer, Susan Huang for $390,000, terms 2/10, n/EOM (i.e., end of month). Because of non-payment by Susan Huang, Dappa Apparel received a $390,.000, 15%, 12-month note on March 1, 2015. The annual reporting period ends June 30 and Dappa Apparel uses the periodic inventory system. Susan Huang paid the note in full on its maturity date. Record the following transactions, assuming the company uses the gross method to account for accounts and notes receivable. a. The sale of merchandise on credit. b. The note received in settlement of the account. c. The adjusting entry for interest. d. Collection of the note and interest. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Page G2 Date Account/Explanation PR Debit Credit Case B. On June 1, 2015, Bappa Apparel sold merchandise to a customer, Kimberly Fisher and received a $70,000 (face amount), two-year, non-interest-bearing note. The market rate of interest is 5%. The annual reporting period ends December 31 and Bappa Apparel uses the periodic inventory system. Kimberly Fisher paid the note in full on its maturity date. Record the following transactions, assuming the company uses the gross method to account for accounts and notes receivable. a. The sale of merchandise and acquisition of non-interest-bearing note. b. The adjusting entry for interest for the first year-end, December 31, 2015. c. Collection of the note on May 31, 2017. (Hint: this will be after the December 31, 2016 year-end adjusting entry.) Please make sure your final answer(s) are accurate to the nearest whole number. Page G3 PR Debit Credit General Journal Date Account/Explanation + + A. On February 5, 2015, Dappa Apparel sold merchandise to a customer, Susan Huang for $390,000, terms 2/10, n/EOM (i.e., end of month). Because of non-payment by Susan Huang, Dappa Apparel received a $390,.000, 15%, 12-month note on March 1, 2015. The annual reporting period ends June 30 and Dappa Apparel uses the periodic inventory system. Susan Huang paid the note in full on its maturity date. Record the following transactions, assuming the company uses the gross method to account for accounts and notes receivable. a. The sale of merchandise on credit. b. The note received in settlement of the account. c. The adjusting entry for interest. d. Collection of the note and interest. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Page G2 Date Account/Explanation PR Debit Credit Case B. On June 1, 2015, Bappa Apparel sold merchandise to a customer, Kimberly Fisher and received a $70,000 (face amount), two-year, non-interest-bearing note. The market rate of interest is 5%. The annual reporting period ends December 31 and Bappa Apparel uses the periodic inventory system. Kimberly Fisher paid the note in full on its maturity date. Record the following transactions, assuming the company uses the gross method to account for accounts and notes receivable. a. The sale of merchandise and acquisition of non-interest-bearing note. b. The adjusting entry for interest for the first year-end, December 31, 2015. c. Collection of the note on May 31, 2017. (Hint: this will be after the December 31, 2016 year-end adjusting entry.) Please make sure your final answer(s) are accurate to the nearest whole number. Page G3 PR Debit Credit General Journal Date Account/Explanation + +

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Case A Date General Journal Debit Credit Feb 15 Accounts Receivable 390000 Sales Revenue 390000 To r... View the full answer