On January 1, 2022, Swifty Corporation had Accounts Receivable of $51,900 and Allowance for Doubtful Accounts of $3,400. Swifty Corporation prepares financial statements annually. During the year, the following selected transactions occurred. Jan. 5 Feb. 2 12 26 Apr. 5 12 June 2 15 Sold $4,200 of merchandise to Rian Company, terms n/30. Accepted a $4,200,4-month, 9% promissory note from Rian Company for balance due. Sold $12,600 of merchandise to Cato Company and accepted Cato's $12,600, 2-month, 10% note for the balance due. Sold $5,500 of merchandise to Malcolm Co., terms n/10. Accepted a $5,500, 3-month, 8% note from Malcolm Co. for balance due. Collected Cato Company note in full. Collected Rian Company note in full. Sold $2.200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 12% note for the amount due.
On January 1, 2022, Swifty Corporation had Accounts Receivable of $51,900 and Allowance for Doubtful Accounts of $3,400. Swifty Corporation prepares financial statements annually. During the year, the following selected transactions occurred. Jan. 5 Feb. 2 12 26 Apr. 5 12 June 2 15 Sold $4,200 of merchandise to Rian Company, terms n/30. Accepted a $4,200,4-month, 9% promissory note from Rian Company for balance due. Sold $12,600 of merchandise to Cato Company and accepted Cato's $12,600, 2-month, 10% note for the balance due. Sold $5,500 of merchandise to Malcolm Co., terms n/10. Accepted a $5,500, 3-month, 8% note from Malcolm Co. for balance due. Collected Cato Company note in full. Collected Rian Company note in full. Sold $2.200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 12% note for the amount due.
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 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:Journalize the transactions. (Omit cost of goods sold entries.) (Do not round intermediate calculations. Round final answers to O decimal
places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in
the order presented in the problem.)
Account Titles and Explanation
Date
Debit
Credit
Transcribed Image Text:On January 1, 2022, Swifty Corporation had Accounts Receivable of $51,900 and Allowance for Doubtful
Accounts of $3,400. Swifty Corporation prepares financial statements annually. During the year, the following
selected transactions occurred.
Jan. 5
Feb. 2
12
26
Apr. 5
12
June 2
15
Sold $4,200 of merchandise to Rian Company, terms n/30.
Accepted a $4,200,4-month, 9% promissory note from Rian Company for balance due.
Sold $12,600 of merchandise to Cato Company and accepted Cato's $12,600, 2-month, 10 % note
for the balance due.
Sold $5,500 of merchandise to Malcolm Co., terms n/10.
Accepted a $5,500, 3-month, 8% note from Malcolm Co. for balance due.
Collected Cato Company note in full.
Collected Rian Company note in full.
Sold $2,200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 12% note for the amount
due.
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