Question

Prepare journal entries to record the following transactions entered into by Glaser Company:                              
                              
2010                              
June   1   Received a $30,000, 12%, 1-year note from Ann Duff as full payment on her account.                      
Nov.   1   Sold merchandise on account to Malone, Inc. for $13,000, terms 2/10, n/30.                      
Nov.   5   Malone, Inc. returned merchandise worth $500.                      
Nov.   9   Received payment in full from Malone, Inc.                      
Dec.    31   Accrued interest on Duff's note.                      

2011                              
June    1   Ann Duff honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2011.                      

Answer 1

Date	Account	Debit	Credit
June 1	Notes Receivable	30,000
	Accounts Receivable - Ann Duff		30,000
Nov 1	Accounts Receivable - Malone	13,000
	Sales revenue		13,000
Nov 5	Sales returns and allowances	500
	Accounts Receivable - Malone		500
Nov 9	Cash	12,250
	Sales discount (12,500*2%)	250
	Accounts Receivable - Malone		12,500
Dec 31	Interest receivable	2,100
	Interest revenue		2,100
	(30,000*12%*7/12)

 

June 1	Cash	33,600
	Notes Receivable		30,000
	Interest receivable		2,100
	Interest revenue (30,000*12%*5/12)		1,500