Journalize the entries to record the transactions. Refer to the Chart of Account
ID: 2584947 • Letter: J
Question
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Assume this is a year in which February has 28 days.
Received from Halloran Co. the amount of the invoice of October 5, less 2% discount.
Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co. dishonored its note dated March 14. July 12 Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. Aug. 1 Received from Trina Gelhaus the amount due on her note of April 3. Oct. 5 Sold merchandise on account, terms 2/10, n/30, to Halloran Co., $13,500. Record the sale net of the 2% discount. The cost of goods sold was $8,100. 15Received from Halloran Co. the amount of the invoice of October 5, less 2% discount.
Explanation / Answer
Date Account Titles Debit Credit $ $ Jan 3 Note Receivable 18,000 Cash 18,000 Feb 10 Accounts Receivable : Bradford & Co. 24,000 Sales 24,000 Cost of Goods Sold 14,400 Merchandise Inventory 14,400 Feb 13 Accounts Receivable : Dry Creek Co. 60,000 Sales Revenue 60,000 Cost of Goods Sold 54,000 Merchandise Inventory 54,000 March 12 Note Receivable 24,000 Accounts Receivable : Bradford & Co. 24,000 March 16 Note Receivable 60,000 Accounts Receivable : Dry Creek Co. 60,000 April 3 Notes Receivable 18,000 Cash ( $ 18,000 x 8% x 1/4) 360 Notes Receivable 18,000 Interest Revenue 360 May 11 Cash 24,280 Notes Receivable: Bradford Co. 24,000 Interest Revenue 280 May 13 Accounts Receivable : Dry Creek Co. 60,900 Notes Receivable 60,000 Interest Revenue 900 July 12 Cash 62,118 Accounts Receivable : Dry Creek Co. 60,900 Interest Revenue ( 60,900 x 12% x 1/6 ) 1,218 August 1 Cash 18,540 Interest Revenue 540 Notes Receivable 18,000 October 5 Accounts Receivable : Halloran Co. 13,230 Sales 13,230 Cost of Goods Sold 8,100 Merchandise Inventory 8,100 Oct 15 Cash 13,230 Accounts Receivable : Halloran Co. 13,230
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