On January 1, 2019, Wildhorse Co. had Accounts Receivable $144,300, Notes Receivable $30,000, and Allowance for...

On January 1, 2019, Wildhorse Co. had Accounts Receivable $144,300, Notes Receivable $30,000, and Allowance for Doubtful Accounts $18,300. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2018. Wildhorse Co. prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold $24,700 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon Company’s $24,700, 3-month, 8% note for balance due. Feb. 18 Sold $13,600 of merchandise to Patwary Company and accepted Patwary’s $13,600, 6-month, 9% note for the amount due. Apr. 20 Collected Sheldon Company note in full. 30 Received payment in full from Willingham Company on the amount due. May 25 Accepted Potter Inc.’s $9,600, 3-month, 7% note in settlement of a past-due balance on account. Aug. 18 Received payment in full from Patwary Company on note due. 25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. Sept. 1 Sold $14,000 of merchandise to Stanbrough Company and accepted a $14,000, 6-month, 10% note for the amount due.Journalize the transactions. (Omit cost of goods sold entries.) (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 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.)

Expert Solution

Date	Particulars	Debit	Credit
Jan 5	Accounts receivable-Sheldon	24.700
	Sales Revenue		24,700

Jan 20	Notes receivable-Sheldon	24,700
	Accounts receivable-Sheldon		24,700

Feb 18	Notes receivable-Patwary	13,600
	Sales revenue		13,600

April 20	Cash	14094
	Notes receivable-Sheldon		13600
	Interest revenue(24,7008%3/12)		494

April 30	Cash	30,900
	Notes receivable-Willingham		30,000
	Interest revenue (30,000 * 9% *4/12)		900

May 25	Notes receivable-Potter	9600
	Accounts receivable-Potter		9600

Aug 18	Cash	14212
	Notes receivable-Patwary		13600
	Interest revenue(136009%6/12)		612

Aug 25	Accounts receivable-Potter	9768
	Notes receivable-Potter		9600
	Interest revenue(96007%3/12)		168

Sep 1	Notes receivable-Stanbrough	14000
	Sales revenue		14000

ekkarill92 answered 2 years ago

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