On January 2, Handley Ltd. sold merchandise on account to R. Richard for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $34,400. On February 1, R. Richard gave Handley a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, Handley's year end, annual adjusting entries were made. On July 1, R. Richard paid the note and any remaining interest. Prepare the journal entries for Handley to record the transactions only on the dates listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation (To record sales) (To record cost of merchandise sold) Debit Credit

On January 2, Handley Ltd. sold merchandise on account to R. Richard for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $34,400. On February 1, R. Richard gave Handley a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, Handley's year end, annual adjusting entries were made. On July 1, R. Richard paid the note and any remaining interest. Prepare the journal entries for Handley to record the transactions only on the dates listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation (To record sales) (To record cost of merchandise sold) Debit Credit

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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