P8-6A On January 1, 2017, Harvee Company had Accounts Receivable of $54,200 and

Question

P8-6A On January 1, 2017, Harvee Company had Accounts Receivable of $54,200 and Al Journalize various rece lowance for Doubtful Accounts of $3,700. Harvee Company prepares financial statements transactions. annually. During the year, the following selected transactions occurred. LO 1, 3), AP Jan. Feb. Sold $4,000 of merchandise to Rian Company, terms n/30. Accepted a $4,000, 4-month, 9% promissory note from Rian Company for 5 2 balance due. 2-month, 10% note for the balance due. Accepted a$5,200, 3 month, 8% note from Malcolm Co. for balance due. Collected Rian Company note in full. 12% note for the amount due. 12 Sold $12,000 of merchandise to Cato Company and accepted Cato's $12,000, 26 Sold $5,200 of merchandise to Malcolm Co., terms n/10. 5 12 Collected Cato Company note in full. 2 15 Sold $2,000 of merchandise to Gerri Inc. and accepted a $2,000, 6-month, Apr. June Instructions Journalize the transactions. (Omit cost of goods sold entries.)

Explanation / Answer

Answer: Journal Entries Date Account title and explanation Debit Credit 5-Jan Accounts receivable-Rian Company $          4,000.00 Sales $          4,000.00 (To record merchandise sold to Rian Company) 2-Feb 9% Promisory notes $          4,000.00 Accounts receivable-Rian Company $          4,000.00 (To record acceptance of 4-months promisory notes from Rian Company) 12-Feb 10% Notes receivable $        12,000.00 Sales $        12,000.00 (To record merchandise sold to Cato Company) 26-Feb Accounts receivable-Malcolm Co $          5,200.00 Sales $          5,200.00 (To record merchandise sold to Malcolm Company) 5-Apr 8% Notes receivable $          5,200.00 Accounts receivable-Malcolm Co $          5,200.00 (To record acceptance of 3-months notes from Malcolm Company) 12-Apr Cash $        12,200.00 10% Notes receivable $        12,000.00 Interest Receivable $              200.00 ($12,000*10%*2 months/12months) (To record receipt from Cato Company) 2-Jun Cash $          4,120.00 9% Promisory notes $          4,000.00 Interest receivable $              120.00 ($4,000*9%*4 months/12months) (To record receipt from Rian Company) 15-Jun 12% Notes receivable $          2,000.00 Sales $          2,000.00 (To record merchandise sold to Gerri. Inc)

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