Question 2 of 3

Question 2 of 3 View Policies Current Attempt in Progress The following selected transactions occurred for Marshall Corporation. The company uses a perpetual inventory system, has a May 31 year end, and adjusts its accounts annually. Feb. Mar. Apr. May 1 3 26 6 27 3 27 31 Sold merchandise for $8,700 on account (n/30) to Morgan Ltd. The cost of goods sold was $6,525. Sold $14,400 of merchandise costing $9,600 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is due at maturity. Sold $12,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $8,000. Sold, on account (n/30), $4,000 of merchandise that cost $3,300 to Superior Limited. Accepted a two-month, 7%, $12,000 note from Mathias in settlement of its account. (See February 26 transaction.) Interest is due at maturity. Collected the Gauthier note in full. (See February 3 transaction.) The Mathias note of March 27 was dishonoured. It is expected that Mathias will eventually pay the amount owed. Recorded accrued interest for three months on outstanding interest on the receivables overdue from Morgan and Superior. Interest on unpaid receivables is charged at 24% per annum (2% per month). (See February 1 and March 6 transactions.) Record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Date Feb. 1 Account Titles and Explanation (To record sales) Debit Credit