Sales and Notes Receivable Transactions The following were selected from among t

Question

Sales and Notes Receivable Transactions The following were selected from among the transactions completed during the ourrent year by Dantx Co., an appliance wholesale company an. 13. Sold merchandise on account to Black The Co, $30,000. The cost of goods sold was $18,000 Mar. 10. Acopted a 60-day, 6% e for $30,000 hom mack Te Co. on account. May 9. Recelved from Black Tie Co. the amount due on the note of March 10. une 10. Sold merchandise on account, terms 2/10, n/30, to Holen for $16,000. Record the sale net of the discount. The cost of goods sold was $9,600 15, 2o. Loaned $24,000 cash to Poreer Co., recevng a 30-day, 9% note. Received hom Holenthe amount an on the moce ofurn ia, iesa 2% ascount. Received the interest de from Poreer Co. and 8 rew 60-day, g% note s"renewal of the loan of the notes receivable account.) is. (eeced both the debit and the odt to Sept. 13. Recelved from Pioneer Co. the amount due on ts note of July 15 13. Sold merchandise on account toWyoot Co, $40,000. The cost of goods sold was $24,000. Oct. 12. Accepted a 60-day, 6% rote scaooo mom wyeo y Co., on accoi Dec. 11. Wyco Co. dishonored the mote dated October 12 26, Received trom wycom co. the . move owed on the-onred note, plus interest for isdays at 12% conputed O' the mat ty vah-ofthe rot Required Jourralize the entries to recond the transactions. Assume 360 days in a year. For a compound entry, if an amount bax does not require an entry,leave it blank. Assume this is a year in which Fetruary has 28 days lan 13-sale

Explanation / Answer

Date Account Titles Debit Credit Jan. 13-sale Accounts receivable 30000 Sales revenue 30000 Jan. 13-cost Cost of goods sold 18000 Inventory 18000 Mar. 10 Notes receivable 30000 Accounts receivable 30000 May. 9 Cash 30300 Notes receivable 30000 Interest revenue ($30000 x 6% x 60/360) 300 Jun. 10-sale Accounts receivable 15680 Sales revenue ($16000 x 98%) 15680 Jun. 10-cost Cost of goods sold 9600 Inventory 9600 Jun. 15 Notes receivable 24000 Cash 24000 Jun. 20 Cash 15680 Accounts receivable 15680 Jul. 15 Cash 180 Notes receivable (new) 24000 Interest revenue ($24000 x 9% x 30/360) 180 Notes receivable (old) 24000 Sep. 13 Cash 24320 Notes receivable 24000 Interest revenue ($24000 x 8% x 60/360) 320 Sep. 13-sale Accounts receivable 40000 Sales revenue 40000 Sep. 13-cost Cost of goods sold 24000 Inventory 24000 Oct. 12 Notes receivable 40000 Accounts receivable 40000 Dec. 11 Accounts receivable 40400 Interest revenue ($40000 x 6% x 60/360) 400 Notes receivable 40000 Dec. 26 Cash 40602 Accounts receivable 40400 Interest revenue ($40400 x 12% x 15/360) 202

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