Now record the transactions for 2019. Dec. 5: Collected in full on account from
ID: 2430424 • Letter: N
Question
Now record the transactions for 2019. Dec. 5: Collected in full on account from Allure, Corp. Begin with the transactons for 2018. DebitCredit Apr. 1:Collected the maturity value of the Go-Mart nate. Jul. 1: Sold inventory to Go-Mart, receiving a $42.000, nine-month, 16% note. Ignore Cost of Goods Sold. Debit Credit Dec. 5 Debit Credit 2019 2018 Jul. 1 Dec. 31: Accrued the interest on the Connely, Inc., note. DebitCredit Jun, 23: Sold merchandise to Allure. Corp., receiving a 60-day, 6% note for $10,000. Ignore Cost of Goods Sold 2019 Oct. 31: Recorded cash sales for the period of $20,000. Ignore Cost of Goods Sold. Debit Credit Debit Credit 2018 2019 Oct. 31 Jul. 1 Sold merchandise inventory to Go-Mart, receiving a $42,000, nine-month, 16% note. Ignore Cost of Goods Sold. Dec. 31: Made an adjusting entry to accrue inberest on the Go-Mart note. Aug. 22: Allure, Corp. dishonored its note at maturity, the business converted the maturity value of the note to an account recervable. Debit Credit Oct. 31 Recorded cash sales for the period of $20,000 lgnore Cost of Goods Sold. 2018 Debit Credit Dec. 31 Made an adjusting entry to accrue interest on the 2019 Go-Mart note 31 Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $13,500 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10,200 Dec. 31: Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $13,500 of accounts receivable will not be colected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10.200. 2019 Apr. 1 Collected the maturity value of the Go- Mart note. Jun. 23 Sold merchandise inventory to Allure, Corp 2 Nov 16: Loaned $18,000 cash to Connely, Inc., receiving a 90-day 12% note. Debit Credit Debit Credit receiving a 60-day, 6% note for S 10,000. Ignore Cost of Goods Sold 2018 2019 Aug. 22 Allure, Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable Nov. 16 Loaned $18,000 cash to Connely, Inc., receiving a 90-day, 12% note. 5 Collected in full on account from Allure, Corp. 31 Accrued the interest on the Connely, Inc, note Dec.Explanation / Answer
Answer:
1
Date
Accounts
Debit
Credit
2018
Jul. 1
Note Receivable—G0 Mart
42,000
Sales Revenue
42,000
2
Date
Accounts
Debit
Credit
2018
Oct. 31
Cash
20,000
Sales Revenue
20,000
3
Date
Accounts
Debit
Credit
2018
Dec. 31
Interest Receivable
3,360
Interest Revenue
3,360
(42000*16%*6/12)
4
Date
Accounts
Debit
Credit
2018
Dec. 31
Bad Debts Expense
3,300
Allowance for Bad Debts
3,300
(13500-10200)
5
Date
Accounts
Debit
Credit
2019
Apr. 1
Cash
47,040
Note Receivable—G0 Mart
42,000
Interest Receivable
3,360
Interest Revenue (42000*16%*3/12)
1,680
6
Date
Accounts
Debit
Credit
2019
Jun. 23
Note Receivable—Allure, Corp.
10,000
Sales Revenue
10,000
7
Date
Accounts
Debit
Credit
2019
Aug. 22
Accounts Receivable—Allure, Corp.
10,100
Note Receivable—Allure, Corp.
10,000
Interest Revenue (10,000*60/360*6%)
100
8
Date
Accounts
Debit
Credit
2019
Nov. 16
Note Receivable—Conney, Inc.
18,000
Cash
18,000
9
Date
Accounts
Debit
Credit
2019
Dec. 5
Cash
10,100
Accounts Receivable—Allure, Corp.
10,100
10
Date
Accounts
Debit
Credit
2019
Dec. 31
Interest Receivable
270
Interest Revenue
270
(18000*45/360*12%)
Date
Accounts
Debit
Credit
2018
Jul. 1
Note Receivable—G0 Mart
42,000
Sales Revenue
42,000
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