Question

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., $28,000. The cost of merchandise sold was $16,800.
Mar. 18.	Accepted a 60-day, 6% note for $28,000 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 $17,700, net/30. The cost of merchandise sold was $10,600.
21.	Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% 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., $20,000. The cost of merchandise sold was $12,000.
Oct. 14.	Accepted a 30-day, 6% note for $20,000 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 45 days at 8% computed on the maturity value of the note.

Journalism the entries using the ALLOWANCE method.

Answer 1

Date	Particulars	Debit	Credit
Jan-21	Acounts Receivable- Black Tie Co.	$28,000.00
	Sales Revenue		$28,000.00
	(To Record sales of merchendise)
	Cost of goods sold	$16,800.00
	Merchandise inventory		$16,800.00
	(To record Cost of Goods Sold)
Mar-18	6% Note receivable	$28,000.00
	Acounts Receivable- Black Tie Co.		$28,000.00
	(Accepted 60 days 6% note)
May-17	Cash	$28,000.00
	6% Note receivable		$28,000.00
Jun-15	Acounts Receivable- Pioneer Co.	$17,700.00
	Sales Revenue		$17,700.00
	(To Record sales of merchendise)
	Cost of goods sold	$10,600.00
	Merchandise inventory		$10,600.00
	(To record Cost of Goods Sold)
Jun-21	8% Notes Receivable	$18,000.00
	Cash		$18,000.00
	(8%, 30 days loan given to JR status)
Jun-25	Cash	$17,700.00
	Acounts Receivable- Pioneer Co.		$17,700.00
	(Payment received from pioneer)
Jul-21	Cash ($18,000 * 8% * 30/365)	$118.36
	Interest on loan		$118.36
	( Interest received)
	9% Note Receivable	$18,000.00
	Jr status (loan given)		$18,000.00
	(Note recived against loan given)
Sep-19	Cash	$18,000.00
	9% note receivable		$18,000.00
Sep-22	Accounts Receivable-Wycoof co.	$20,000.00
	Sales Revenue		$20,000.00
	Cost of goods sold	$12,000.00
	Merchandise inventory		$12,000.00
	(To record Cost of Goods Sold)
Oct-14	6% Note receivable	$20,000.00
	Wycoof co. a/c		$20,000.00
	(Accepted 60 days 6% note)
Nov-13	Cash	$20,000.00
	6% Note receivable		$20,000.00
	(Note presented to bank)
	Accounts Receivable-Wycoof co.	$20,000.00
	Cash		$20,000.00
	(Note dishonored)
Dec-28	Cash ($20000 * 8% *45 / 365)	$20,197.26
	Interest		$20,197.26
	Accounts Receivable-Wycoof co.		$20,000.00
	( To Record Received from Wycoof with 8% interest)