Problem 4. On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for doubtful accounts $10,000. Carly Company prepares financial statements annually. During the year the following selected transactions occurred.

Jan. 5	Sold $12,000 of merchandise to Sam Company, terms n/30.
Feb. 2	Accepted a $12,000, 4-month, 10% promissory note from Sam Company for the balance due.
12	Sold $15,000 of merchandise to Neville Company and accepted Neville's $15,000, 2-month, 10% note for the balance due.
Apr. 12	Collected Neville Company note in full.
June 2	Collected Sam Company note in full.
July 15	Sold $11,000 of merchandise to Hutchinson Co. and accepted Hutchinson's $11,000, 3-month, 12% note for the amount due.
Oct. 15	Hutchinson Co.'s note was dishonored. Hutchinson Co. is bankrupt, and there is no hope of future settlement.

Instructions

Journalize the transactions.

Answer rating: 100% (QA)

The journal entries for the transaction described would be as follows To record the sale of the youth golf clubs and lessons package javascript Date December 24 2022 Pro Shop Sales 800 Cost of Goods S... View the full answer