Sales and Notes Receivable Transactions The following were selected from among t
ID: 2448989 • Letter: S
Question
Sales and Notes Receivable Transactions
The following were selected from among the transactions completed during the current year by Indigo Co., an appliance wholesale company:
Received from Aztec Co. the amount owed on the dishonored note, plus interest for 15 days at 12% computed on the maturity value of the note.
Jan. 13-sale
Jan. 13-cost
Mar. 10
May 9
June 10-sale
June 10-cost
June 15
June 20
July 15
Sept. 13- note
Sept. 13-sale
Sept. 13-cost
Oct. 12
Dec. 11
Dec. 26
Jan. 13. Sold merchandise on account to Boylan Co., $32,400. The cost of merchandise sold was $19,440. Mar. 10. Accepted a 60-day, 6% note for $32,400 from Boylan Co. on account. May 9. Received from Boylan Co. the amount due on the note of March 10. June 10. Sold merchandise on account to Holen for $17,400. The cost of merchandise sold was $10,440. 15. Loaned $18,000 cash to Angie Jones, receiving a 30-day, 8% note. 20. Received from Holen the amount due on the invoice of June 10, less 1% discount. July 15. Received the interest due from Angie Jones and a new 60-day, 9% note as a renewal of the loan of June 15. (Record both the debit and the credit to the notes receivable account.) Sept. 13. Received from Angie Jones the amount due on her note of July 15. 13. Sold merchandise on account to Aztec Co., $20,000. The cost of merchandise sold was $12,000. Oct. 12. Accepted a 60-day, 6% note for $20,000 from Aztec Co. on account. Dec. 11. Aztec Co. dishonored the note dated October 12. 26.Received from Aztec Co. the amount owed on the dishonored note, plus interest for 15 days at 12% computed on the maturity value of the note.
Jan. 13-sale
Jan. 13-cost
Mar. 10
May 9
June 10-sale
June 10-cost
June 15
June 20
July 15
Sept. 13- note
Sept. 13-sale
Sept. 13-cost
Oct. 12
Dec. 11
Dec. 26
Explanation / Answer
Date accounts and explanations Debit Credit 13-Jan accounts receivable-boylan 32400 sales 32400 10-Mar notes receivable 32400 accounts receivable 32400 9-May cash 32724 notes receivable 32400 interest revenue(32400*6%*60/360) 324 10-Jun accounts receivable-holen 17400 sales 17400 15-Jun notes receivable-angie 18000 cash 18000 20-Jun cash 17226 discount 174 Accounts receivable-holen 17400 15-Jul cash 120 interest revenue 120 13-Sep cash 18000 notes receivable-angie 18000 13-Sep accounts receivable-Aztec 20000 sales 20000 12-Oct notes receivable 20000 accounts receivable-Aztec 20000 26-Dec cash 20300 notes receivable 20000 interest revenue(20000*6%*60/360)+(20000*12%*15/360) 300
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