On January 1, 2014, Oswalt Company had Accounts Receivable of $53,100 and Allowa

Question

On January 1, 2014, Oswalt Company had Accounts Receivable of $53,100 and Allowance for Doubtful Accounts of $4,800. Oswalt Company prepares financial statements annually. During the year, the following selected transactions occurred.

Journalize the transactions.

1. Jan.  5 Sold $6,100 of merchandise to Ross Company, terms n/30. 2. Feb.  2 Accepted a $6,100, 4-month, 9% promissory note from Ross Company for balance due. 3. 12 Sold $15,400 of merchandise to Cano Company and accepted Cano’s $15,400, 2-month, 10% note for the balance due. 4. 26 Sold $5,900 of merchandise to Meachum Co., terms n/10. 5. Apr.  5 Accepted a $5,900, 3-month, 11% note from Meachum Co. for balance due. 6. 12 Collected Cano Company note in full. 7. June  2 Collected Ross Company note in full. 8. 15 Sold $3,000 of merchandise to Glanvile Inc. and accepted a $3,000, 6-month, 12% note for the amount due.

Explanation / Answer

Date Account title Debit credit jan5 Accounts receivable 6100 sales 6100 [Sales made on account ] feb 2 Note receivable 6100 Accounts receivable 6100 [note accepted from receivable] feb 12 Note receivables 15400 sales 15400 [Sales made ] feb 26 Accounts receivable 5900 sales 5900 [sales made on account ] apr 5 Note receivable 5900 Accounts receivable 5900 [note accepted] apr1 2 cash 15656.67 Interest revenue [15400*.10*2/12] 256.67 Note receivable 15400 [note collected] june 12 cash 6283 Note receivable 6100 Interest revenue     [6100 *09*4/12] 183 [note collected ] june 15 Note receivable 3000 sales 3000 [sales made]

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