2018 Jul. 1 Sold merchandise inventory to Stan-Mart, receiving a $41,000, nine-month, 8% note. Ignore Cost of Goods Sold. Oct. 31 Recorded cash sales for the period of $24,000. Ignore Cost of Goods Sold. Dec. 31 Made an adjusting entry to accrue interest on the Stan-Mart note. 31 Made an adjusting entry to record bad debts expense based on an aging of accounts receivable. The aging schedule shows that $13,800 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $11,800. 2019 Apr. 1 Collected the maturity value of the Stan-Mart note. Jun. 23 Sold merchandise inventory to Appeal, Corp., receiving a 60-day, 6% note for $7,000. Ignore Cost of Goods Sold. Aug. 22 Appeal, Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Nov. 16 Loaned $17,000 cash to Crosby, Inc., receiving a 90-day, 16% note. Dec. 5 Collected in full on account from Appeal, Corp. 31 Accrued the interest on the Crosby, Inc. note.
2018 Jul. 1 Sold merchandise inventory to Stan-Mart, receiving a $41,000, nine-month, 8% note. Ignore Cost of Goods Sold. Oct. 31 Recorded cash sales for the period of $24,000. Ignore Cost of Goods Sold. Dec. 31 Made an adjusting entry to accrue interest on the Stan-Mart note. 31 Made an adjusting entry to record bad debts expense based on an aging of accounts receivable. The aging schedule shows that $13,800 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $11,800. 2019 Apr. 1 Collected the maturity value of the Stan-Mart note. Jun. 23 Sold merchandise inventory to Appeal, Corp., receiving a 60-day, 6% note for $7,000. Ignore Cost of Goods Sold. Aug. 22 Appeal, Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Nov. 16 Loaned $17,000 cash to Crosby, Inc., receiving a 90-day, 16% note. Dec. 5 Collected in full on account from Appeal, Corp. 31 Accrued the interest on the Crosby, Inc. note.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
Related questions
Question
100%
Accounting for uncollectible accounts (aging-of-receivables method), notes receivable, and accrued interest revenue
Sleepy Recliner Chairs completed the following selected transactions:
Record the transactions in the journal of Sleepy Recliner Chairs. Explanations are not required. (Round to the nearest dollar.)
Transcribed Image Text:2018
Jul. 1 Sold merchandise inventory to Stan-Mart, receiving a $41,000, nine-month, 8%
note. Ignore Cost of Goods Sold.
Oct. 31 Recorded cash sales for the period of $24,000. Ignore Cost of Goods Sold.
Dec. 31 Made an adjusting entry to accrue interest on the Stan-Mart note.
31 Made an adjusting entry to record bad debts expense based on an aging
of accounts receivable. The aging schedule shows that $13,800 of accounts
receivable will not be collected. Prior to this adjustment, the credit balance in
Allowance for Bad Debts is $11,800.
2019
Apr. 1 Collected the maturity value of the Stan-Mart note.
Jun. 23 Sold merchandise inventory to Appeal, Corp., receiving a 60-day, 6% note for
$7,000. Ignore Cost of Goods Sold.
Aug. 22 Appeal, Corp. dishonored its note at maturity; the business converted the
maturity value of the note to an account receivable.
Nov. 16 Loaned $17,000 cash to Crosby, Inc., receiving a 90-day, 16% note.
Dec. 5 Collected in full on account from Appeal, Corp.
31 Accrued the interest on the Crosby, Inc. note.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning