On January 1, 2012, Kloppenberg Company had Accounts Receivable $139,000, Notes
ID: 2346037 • Letter: O
Question
On January 1, 2012, Kloppenberg Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Sara Rogers Company. It is a 4-month, 12% note dated December 31, 2011. Kloppenberg Company prepares financial statements annually. During the year the following selected transactions occurred.Jan. 5 Sold $20,000 of merchandise to Dedonder Company, terms n/15.
20 Accepted Dedonder Company's $20,000, 3-month, 9% note for balance due.
Feb. 18 Sold $8,000 of merchandise to Ludwig Company and accepted Ludwig's $8,000, 6-month, 9% note for the amount due.
Apr. 20 Collected Dedonder Company note in full.
30 Received payment in full from Sara Rogers Company on the amount due.
May 25 Accepted Jenks Inc.'s $4,000, 3-month, 7% note in settlement of a past-due balance on account.
Aug. 18 Received payment in full from Ludwig Company on note due.
25 The Jenks Inc. note was dishonored. Jenks Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $12,000 of merchandise to Lena Torme Company and accepted a $12,000, 6-month, 10% note for the amount due.
Instructions
Journalize the transactions. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. Round answers to 0 decimal places, e.g. 125.)
Date Description Debit Credit
Jan. 5
Jan. 20
Feb. 18
Apr. 20
Apr. 30
May 25
Aug. 18
Aug. 25
Sept. 1
Explanation / Answer
Jan. 5 Accounts Receivable—Dedonder Company 20,000
Sales 20,000
20 Notes Receivable 20,000
Accounts Receivable—Dedonder
Company 20,000
Feb. 18 Notes Receivable 8,000
Sales 8,000
Apr. 20 Cash ($20,000 + $450) 20,450
Notes Receivable 20,000
Interest Revenue
($20,000 X 9% X 3/12) 450
30 Cash ($25,000 + $1,000) 26,000
Notes Receivable 25,000
Interest Revenue
($25,000 X 12% X 4/12) 1,000
May 25 Notes Receivable 4,000
Accounts Receivable—Jenks Inc. 4,000
Aug. 18 Cash ($8,000 + $360) 8,360
Notes Receivable 8,000
Interest Revenue
($8,000 X 9% X 6/12) 360
25 Accounts Receivable—Jenks Inc.
($4,000 + $70) 4,070
Notes Receivable 4,000
Interest Revenue
($4,000 X 7% X 3/12) 70
Sept. 1 Notes Receivable 12,000
Sales 12,000
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