Journalize the following transactions in the accounts of Shapiro Theater Product
ID: 2728543 • Letter: J
Question
Journalize the following transactions in the accounts of Shapiro Theater Productions: April 1. Received a $95,000. 90-day, 8% note dated April 1 from Crewell Company on account. May 1. Discounted the note at First City Bank at 12%. 31. The note is dishonored by Creswell Company, paid the bank the amount due on the note, plus a protest fee of $900. June 30. Received the amount due on the dishonored note plus interest foe 30 days at 18% on the total amount charged to Creswell Company on May 31. Journalize the following transactions: 20 times 1 Dec. 31. Estimated that uncollectible-account expense for the year was 2% on credit sales of $750,000 and recorded that amount as expenses. 31. Made the closing entry for uncollectible-account expense. 20 times 2 Feb 4. Sold inventory to Marian Holt, $4,500 on account. Ignore cost of goods sold. July 1. Wrote off Manan Holt's account as uncollectible after repeated efforts to collect from her. Oct 19. Received $900 from Marian Holt, along with a letter stating her intention to pay within 30 days. Reinstated Holt's a count in full. Nov. 15. Received the balance due from Marian Holt. Dec. 31. Made a compound entry to write off the following accounts as uncollectible: Kaycee Britt, $900; Tim Sands, $700; and Anna Chin, $1,400. 31. Estimated that uncollectible-account expense for the year was 2% on credit sales of $885,000 and recorded the expenses. 31. Made the closing entry for uncollectible-account expense.Explanation / Answer
Exercise-1:
Date Description Debit Credit 1-Apr Notes Receivable 95000 To Accounts Receivable 95000 1-May Cash 83600 Interest expenses 11400 To Notes Receivable 95000 31-May Note Receivable 95000 Protest fee 900 To Accounts Receivable 95900 30-Jun Cash 97319 To Notes Receivable 95900 To Interest 1419Related Questions
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