Problem 8-6A On January 1, 2017, Novak Corp. had Accounts Receivable of $54,300 and Allowance for...

Problem 8-6A

On January 1, 2017, Novak Corp. had Accounts Receivable of $54,300 and Allowance for Doubtful Accounts of $3,700. Novak Corp. prepares financial statements annually. During the year, the following selected transactions occurred:

Jan. 5		Sold $3,600 of merchandise to Rian Company, terms n/30.
Feb. 2		Accepted a $3,600, 4-month, 9% promissory note from Rian Company for balance due.
12		Sold $10,800 of merchandise to Cato Company and accepted Cato’s $10,800, 2-month, 10% note for the balance due.
26		Sold $12,200 of merchandise to Malcolm Co., terms n/10.
Apr. 5		Accepted a $12,200, 3-month, 9% note from Malcolm Co. for balance due.
12		Collected Cato Company note in full.
June 2		Collected Rian Company note in full.
15		Sold $2,000 of merchandise to Gerri Inc. and accepted a $2,000, 6-month, 13% note for the amount due.

Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Solutions

Expert Solution

Journal entries :

Date	account and explanation	debit	credit
Jan 5	Account receivable- Rian Company	3600
	Sales revenue		3600
	(To record sales)

Feb 2	Notes receivable- Rian Company	3600
	Account receivable- Rian Company		3600
	(To record notes)

Feb 12	Account receivable-Cato's	10800
	Sales revenue		10800
	(To record sales)

Feb 26	Account receivable-Malcolm Co	12200
	Sales revenue		12200
	(To record sales)

Apr 5	Notes receivable-Matcolm Co	12200
	Account receivable-Malcolm Co		12200
	(To record notes)

June 12	Cash	10980
	Notes receivable-Cato's company		10800
	Interest revenue (1080012%2/12)		180
	(To record amount collected)

June 12	Cash	3708
	Notes receivable-Rian Co		3600
	Interest revenue (36009%4/12)		108
	(TO record collection)

JUne 15	Notes receivable-Gerri Inc.	2000
	Sales revenue		2000
	(To record sales)

ekkarill92 answered 1 year ago

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