On January 1, 2019, Marigold Corp. had Accounts Receivable $134,200, Notes Recei

Question

On January 1, 2019, Marigold Corp. had Accounts Receivable $134,200, Notes Receivable $39,600, and Allowance for Doubtful Accounts $28,200. The note receivable is from Willingham Company. It is a 4-month, 8% note dated December 31, 2018. Marigold Corp. prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 20 Feb. 18 Apr. 20 May 25 Aug. 18 Sold $35,600 of merchandise to Sheldon Company, terms n/15 Accepted Sheldon Company's $35,600, 3-month, 7% note for balance due. amount due. Collected Sheldon Company note in full. Accepted Potter Inc.'s $19,400, 3-month, 6% note in settlement of a past-due balance on account. Received payment in full from Patwary Company on note due. and 23,900 of merchandise to Patary Company and accepted Patary's $23,900, 6-month 8% note for the 30 Received payment in full from Willingham Company on the amount due 25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated Sold $13,000 of m erchandise to Stanbrough Company and accepted a $13,000, 6-month, 9% note for the amount due. Sept. 1 Journalize the transactions. (Omit cost of goods sold entries.) (Round answers to o decimal places, e.g. 5,275 Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Date Account titles & Explanations Debi Credit 5-Jan Account receivable-Sheldon company 35,600 Sales 35,600 20-Jan Note receivable 35,600 Account receivable-sheldon company 35,600 18-Feb Note receivable-Patawary 23,900 Sales 23,900 20-Apr Cash 36,223 interest income (35,600*7%*3/12) 623 note receivablle 35,600 30-Apr Cash 40,656 interest income (39600*8%*4/12) 1056 note receivablle 39,600 25-May Note receivable 19,400 Account receivable -potter 19,400 18-Aug Cash 24,856 interest income (23,900*8%*6/12) 956 note receivablle 23,900 25-Aug Account receivable 19,691 interest income (19400*6%*3/12) 291 note receivable 19,400 1-Sep note receivable 13,000 sales 13,000

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