8. C. Walton sold inventory on 1 August to M. Jones for $990 (including $90 GST). On 20 August, Jones paid Walton in full settlement. On 31 August, the bank advised the cheque from Jones had been dishonoured. Required: a. Record Jones's receipt of the cheque, and its dishonour, in the General Journal. General Journal of C Walton Debit Date Particulars Credit b. Show Jones's account in the ledger to 31 August. Accounts Receivable – M Jones Debit Date Details Folio Credit Balance

8. C. Walton sold inventory on 1 August to M. Jones for $990 (including $90 GST). On 20 August, Jones paid Walton in full settlement. On 31 August, the bank advised the cheque from Jones had been dishonoured. Required: a. Record Jones's receipt of the cheque, and its dishonour, in the General Journal. General Journal of C Walton Debit Date Particulars Credit b. Show Jones's account in the ledger to 31 August. Accounts Receivable – M Jones Debit Date Details Folio Credit Balance

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 5P

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Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
Laminate Express extended credit to customer Amal Sunderland in the amount of $244,650 for his January 4 purchase of flooring. Terms of the sale are 2/30, n/120. The cost of the purchase to Laminate Express is $88,440. On April 5, Laminate Express determined that Amal Sunderlands account was uncollectible and wrote off the debt. On June 22, Amal Sunderland unexpectedly paid 30% of the total amount due in cash on his account. Record each Laminate Express transaction with Amal Sunderland. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Laminate Express rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, though, that in most cases the direct write-off method is not allowed.
Window World extended credit to customer Nile Jenkins in the amount of $130,900 for his purchase of window treatments on April 2. Terms of the sale are 2/60, n/150. The cost of the purchase to Window World is $56,200. On September 4, Window World determined that Nile Jenkinss account was uncollectible and wrote off the debt. On December 3, Mr. Jenkins unexpectedly paid in full on his account. Record each Window World transaction with Nile Jenkins. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Window World rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, however, that in most cases the direct write-off method is not allowed.
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Prepare entries in general journal form to record the following: Aug. 6 Woodard Company failed to pay its 30-day, 5 percent note for 480, dated July 7. The note is thus dishonored at maturity.
Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018
Goods are sold on 30.09.2022 to the company "PD" instead of the amount of €10,000, with promissory notes to our order due on 28.02.2023 to which interest of €500 is added (the company separates on 30.09.2022 the interest into: accrued and unearned accrued interest on notes receivable). which are the journal entries?
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of $15,000 and a maturity value (principal plus interest) of $15,400. The discount is calculated to be $385, and the accrued interest income is $100. The recourse liability is estimated to be $1,000. Required: Prepare the journal entry of Phillips to record the sale of the note receivable.
In January, Lily Bhd sold goods at a quoted price of RM10,000 with a credit term of 2/10, net 90. Show the journal entries and amount to be measured in the receivables account; i）When cash discount of 2% is to be applied. ii）At initial measurement iii）During the year, a customer of Lily Bhd was deemed uncollectable. Give examples of any five situations where a debtor can be declared as Uncollectable Receivables.
On April 4, 2021, LASTNATOBEYBE, Inc. sold goods on account to acustomer for P1,000,000, terms were 2/10, n/30. The company factoredthe accounts receivable on April 4 to a financial institution on April 14,2021. The factor charged 8% and withheld 15% of the receivablesfactored.How much is the proceeds from factoring?
On May 25, Al Mujaaz Company made a credit sale of OMR 220,000 to Al Zahir Company and received a note for four months with 8% interest from him in settlement of account receivables. Al Mujaaz Company closes their accounts every year on July 31st and calculated accrued interest on the note of May 25. Al Mujaaz Company received Notification from Al Zahir that he was unable to honour his note on the due date and it is expected that AlZahir will pay at a later date but On 1st OctoberAl Zahir has paid full amount on note, On May 25, Another note for 60 days 11.5% interest has been received for OMR 112,000 from Al.Zubair Company has been honoured on the due date. Prepare Necessary Journal entries for the above Transactions
In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of P6,000,000. On the note’s due date, December 31, 2X21, Land owed P480,000 of accrued interest and P6,000,000 on the note. Land was in financial difficulty and was unable to make any payments. To solve the problem, Land and the bank agreed to amend the note as follows: • Extended the maturity to December 31, 2X23. • The P480,000 interest due on December 31, 2X21 was forgiven. • Land Corporation would be required to make an annual interest payment of P540,000 every December 31 starting 2X22. • Transaction cost incurred that is directly related to the debt restructuring was P16,850. As of December 31, 2X21, the yield rate based on the restructured debt and after considering the amount of transaction cost is 6.24%. 5. What type of debt restructuring is being described by the case? 6. What is the total gain from restructuring? 7. What amount should Land Corporation report…