Question

Question: Ivanhoe Company's balance sheet at December 31, 2021, is presented below. Ivanhoe Company Balance...

During January 2022, the following transactions occurred. Ivanhoe uses the perpetual inventory method.

Jan. 1		Ivanhoe accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $1,200 account.
3		Ivanhoe wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300).
8		Ivanhoe purchased $15,630 of inventory on account.
11		Ivanhoe sold for $25,500 on account inventory that cost $17,210.
15		Ivanhoe sold inventory that cost $730 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Ivanhoe by First Bank is 3%.
17		Ivanhoe collected $21,000 from customers on account.
21		Ivanhoe paid $17,380 on accounts payable.
24		Ivanhoe received payment in full ($300) from Drake Company on the account written off on January 3.
27		Ivanhoe purchased advertising supplies for $1,420 cash.
31		Ivanhoe paid other operating expenses, $3,280.

Answer 1

Date	General Journal	Debit	Credit
2022		$ 1,200
Jan-01	Notes Receivable		$ 1,200
	Account receivable
	(To record Note receivable received )
Jan-03	Allowance for doubtful accounts (500+300)	$ 800
	Account receivable		$ 800
	(To record Uncollectible written off )
Jan-08	Inventory	$ 15,630
	Accounts Payable		$ 15,630
	(To record Purchased inventory on account )
Jan-11	Accounts receivable	$ 25,500
	Sales Revenue		$ 25,500
	(To record sales on account)
Jan-11	Cost of goods sold	$ 17,210
	Inventory		$ 17,210
	(To record cost of goods sold )
Jan-15	Cash ($1100 - $ 33 )	$ 1,067
	Visa service fee ($1,100 *3%)	$ 33
	Sales revenue		$ 1,100
	( To record Sales made )
	Cost of goods sold	$ 730
	Inventory		$ 730
	(To record cost of goods sold )
Jan-17	Cash	$ 21,000
	Accounts receivable		$ 21,000
	(To record cash collection from debtors )
Jan-21	Accounts Payable	$ 17,380
	Cash		$ 17,380
	( To Record paid to Creditors )
Jan-24	Accounts receivable	$ 300
	Allowance for doubtful accounts		$ 300
	(To record recovery of Bad debts )
	Cash	$ 300
	Accounts receivable		$ 300
	(To record Cash from Debtors )
Jan-27	Supplies	$ 1,420
	Cash		$ 1,420
	(To record purchase of advertising supplies )
Jan-31	Operating Expense	$ 3,280
	Cash		$ 3,280
	(To record Operating expenses paid )