.a. -Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following:
Sold $24,000 of merchandise to Sapounas Company, terms n/30. The cost of the goods sold was $14,400. Schneider uses the perpetual inventory system.
Accepted a $24,000, five-month, 5% promissory note from Sapounas Company for the balance due. (See January 2 transaction.) Interest is payable at maturity.
Sold $15,000 of merchandise costing $9,000 to Garrison Company and accepted Garrison's three-month, 5% note in payment. Interest is payable at maturity.
Sold $12,000 of merchandise to Hoffman Co., terms n/30. The cost of the merchandise sold was $7,200.
Collected the amount owing from Hoffman Co. in full.
Collected the Garrison note in full. (See February 15 transaction.)
Accrued interest at year end.
Sapounas Company dishonoured its note of February 1. The company is bankrupt and there is no hope of future settlement.
Sold $6,000 merchandise costing $3,600 to Weber Enterprises and accepted Weber's $6,000, three-month, 7% note for the amount due, with interest payable at maturity.
The Weber Enterprises note was dishonoured. (See July 13 transaction.) It is expected that Weber will eventually pay the amount owed.
Record the above transactions. (Round calculations to the nearest dollar.)
1.b -AN Jensen Company's general ledger included the following selected accounts (in thousands) at December 31, 2021:
Allowance for doubtful accounts
Bad debt expense
Cost of goods sold
Notes receivable—due in 2022
Notes receivable—due in 2025
1.On December 31, 2020, Accounts Receivable was $611.1 thousand and the Allowance for Doubtful Accounts was $36.6 thousand.
2.The receivables turnover was 8.3 the previous year.
Prepare the assets section of the balance sheet.
Calculate the receivables turnover and average collection period. Compare these results with the previous year's results and comment on any trends
In this case, you are posted two questions and we can able to answer in first part (1-a). Please re-post second part (1-b) again.
Prepare necessary journal entries for the given transaction.
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