One of Natalie's friends, Curtis Lesperance, runs a coffee shop where he sells specialty coffees and prepares and sells muffins and cookies. He is eager to buy one of Natalie's fine European mixers, which would enable him to make larger batches of muffins and cookies. However, Curtis cannot afford to pay for the mixer for at least 30 days. He asks Natalie if she would be willing to sell him the mixer on credit.

The following transactions occurred in June through August 2014.

June 1 After much thought, Natalie sells a mixer to Curtis on credit, terms n/30, for $1,150 (cost of mixer $620). 30 Curtis calls Natalie. He is unable to pay the amount outstanding for another month, so he signs a one-month, 8.25% note receivable.

July 31 Curtis calls Natalie. He indicates that he is unable to pay today but hopes to have a check for her at the end of the week. Natalie prepares the journal entry to record the dishonor of the note. She assumes she will be paid within a week.

Aug. 7 Natalie receives a check from Curtis in payment of his balance owed.

Prepare journal entries for the transactions that occurred in June, July, and August. (The company uses a perpetual inventory system). Round to nearest dollar.

Transcribed Image Text:

Date ||||| Account Titles and Explanation (To record sales revenue) (To record cost of goods sold) Debit Credit Date ||||| Account Titles and Explanation (To record sales revenue) (To record cost of goods sold) Debit Credit

Answer rating: 100% (QA)

Date Account titles and Explanations Debit Credit 1Jun Account rec... View the full answer