In: Accounting
Sales and Notes Receivable Transactions
The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company:
Jan. 21. | Sold merchandise on account to Black Tie Co., $32,700. The cost of merchandise sold was $19,620. | |
Mar. 18. | Accepted a 60-day, 8% note for $32,700 from Black Tie Co. on account. | |
May 17. | Received from Black Tie Co. the amount due on the note of March 18. | |
June 15. | Sold merchandise on account to Pioneer Co. for $17,600. The cost of merchandise sold was $10,560. | |
21. | Loaned $24,000 cash to JR Stutts, receiving a 30-day, 6% note. | |
25. | Received from Pioneer Co. the amount due on the invoice of June 15. | |
July 21. | Received the interest due from JR Stutts and a new 60-day, 9% note as a renewal of the loan of June 21. (Record both the debit and the credit to the notes receivable account.) | |
Sept. 19. | Received from JR Stutts the amount due on her note of July 21. | |
22. | Sold merchandise on account to Wycoff Co., $60,000. The cost of merchandise sold was $36,000. | |
Oct. 14. | Accepted a 60-day, 6% note for $60,000 from Wycoff Co. on account. | |
Nov. 13. | Wycoff Co. dishonored the note dated October 14. | |
Dec. 28. | Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 15 days at 12% computed on the maturity value of the note. |
Required:
Journalize the entries to record the transactions. Assume 360 days in a year. For a compound entry, if an amount box does not require an entry, leave it blank.
Jan. 21-sale | |||
Jan. 21-cost | |||
Mar. 18 | |||
May 17 | |||
June 15-sale | |||
June 15-cost | |||
June 21 | |||
June 25 | |||
July 21 | |||
Sept. 19- note | |||
Sept. 22-sale | |||
Sept. 22-cost | |||
Oct. 14 | |||
Nov. 13 | |||
Dec. 28 | |||