The following were selected from among the transactions completed by Mair Co. du

Question

The following were selected from among the transactions completed by Mair Co. during the current year. Mair Co. sells and installs home and business security system. Laoned $12,000 cash to Jas cauuded, receiving a 90-day, 8% note. Sold merchandise on account to periman & Co., $28,000. he cost of the merchandise sold was $16,500. Sold merchandise on account to Centenntial Co., $30,000. The cost of merchandise sold was $17,600. Accepted a 60-day, 6% note for $28,000 from Periman & Co. on account. Accepted a 60-day, 12% note for 30,000 from Centernial Co, on account. Received the unterest due from Jas Caudel and a new 90-day, 10% note as a renewal of the loan of January 10. (Record both the debit and the credit to the notes receivable account.) Received from Periman & Co. the amount due on the note of March 6. Centennial Co. dishonored its note dated March 14. Received from Centennial Co. the amount owed on the dishonored note, plus interest for 30 days at 12% computed on the maturity value of the note. Received from Jas Caudel the amount due on his note of April 10. Sold merchandise on account to Lindenfield Co., $13600. The cost of the merchandise sold was $8,000. Received from Lindenfield Co. the amount of the invoice of August 10, less 1% discount.

Explanation / Answer

Date Account Titles Debt Credit 10-Jan Notes receivable $12,000 Cash $12,000 4-Feb Accounts rec. $28,000 Sales revenue $28,000 Cost of merchandise $16,500 Merchandise $16,500 13-Feb Accounts rec. $30,000 Sales revenue $30,000 Cost of merchandise $17,600 Merchandise $17,600 6-Mar Notes receivable $28,000 Accounts receivable $28,000 14-Mar Notes receivable $30,000 Accounts receivable $30,000 10-Apr Cash $240 Interest revenue $240 5-May Cash $28,280 Notes receivable $28,000 Interest revenue $280 13-May Accounts rec. $30,600 Notes receivable $30,600 12-Jun Cash $30,906 Accounts receivable $30,600 Interest revenue $306 9-Jul Cash $12,300 Notes receivable $12,000 Interest revenue $300 10-Aug Accounts rec. $13,600 Sales revenue $13,600 Cost of merchandise $8,000 Merchandise $8,000 20-Aug Cash $13,464 Discount on acc rec $136 Accounts receivable $13,600

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