PT ABC, a construction equipment supplier, uses the allowance method for bad debts.
The transactions made include the following:

 

Feb 1   : Selling goods on credit to PT Anita Rp 8,000,000. Cost of goods sold is Rp 4,500,000
March 15  : received a 60-day note, 12% interest per annum of Rp 8,000,000 from PT Anita for the sale of credit.
April 9   : write off receivables from PT Dana amounting to Rp 2,500,000 which are considered uncollectible
April 21  : loaned Jaya Kusuma Rp 7,500,000 and received a 90-day note, 14% interest per annum
May 14   : received interest income due from PT Anita and received an extension of 90 days note receivable, 14% interest per year. (Record both debits and credits to the note receivable account).
June 13   : re-recorded the receivables of PT Dana which had been written off on April 9 and received cash for payment the receivables amounted to IDR 2,500,000
July 20   : Jaya Kusuma was unable to pay the bill of lading
August 12 : received payment of note receivable dated May 14 which was due from PT Anita.
August 19  : received the outstanding amount from the unfulfilled note receivable from Jaya Kusuma, plus late interest  30 days at a rate of 15% per annum, calculated based on the maturity value of the note receivable.
December 16  : received a 60-day, 12% per annum note receivable of Rp 12,000,000 from PT Globalindo for purchases on credit.
December 31 : it is estimated that 3% of credit sales as of December 31, amounting to Rp 1,375,000,000, are considered uncollectible.

 

Instructions:
1 Prepare journal entries to record the above transactions!
2 Prepare the adjusting entries to record the interest accrued as of December 31 of PT Globalindo's notes receivable.

Answer rating: 100% (QA)

Prepare journal entries to record the above transactions Feb 1Accounts Receivable 8000000 Sales 8000... View the full answer