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

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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. 13. Sold merchandise on account to Black Tie Co., $40,200. The cost of goods sold was $24,120. Mar. 10. Accepted a 60-day, 8% note for $40,200 from Black Tie Co. on account. May 9. Received from Black Tie Co. the amount due on the note of March 10. June 10. Sold merchandise on account, terms 2/10, n/30, to Holen for $14,200. Record the sale net of the discount. The cost of goods sold was $8,520. 15. Loaned $24,000 cash to Pioneer Co., receiving a 30-day, 6% note. 20. Received from Holen the amount due on the invoice of June 10, less 2% discount. July 15. Received the interest due from Pioneer Co. 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 Pioneer Co. the amount due on its note of July 15. 13. Sold merchandise on account toWycoff Co., $40,000. The cost of goods sold was $24,000. Oct. 12. Accepted a 60-day, 6% note for $40,000 from Wycoff Co. on account. Dec. 11. Wycoff Co. dishonored the note dated October 12. 26. 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. Assume this is a year in which February has 28 days. Jan. 13-sale Accounts Receivable-Black Tie Co. Sales Jan. 13-cost Cost of Goods Sold Inventory Mar. 10 Notes Receivable Accounts Receivable-Black Tie Co. May 9 Cash Notes Receivable Interest Revenue June 10-sale Accounts Receivable-Holen Sales June 10-cost Cost of Goods Sold Inventory June 15 Notes Receivable Cash June 20 Cash Sales July 15 Sept. 13- note Sept. 13-sale Sept. 13-cost Oct. 12 Dec. 11 Dec. 26

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Explanation to the Given problem --

DATE DESCRIPTION POST REF DEBIT CREDIT 13-Jan Accounts Receivable - Black Tie Co. 40200 Sales 40200 13-Jan Cost of Mercandise sold 24120 Mercandise Inventory 24120 10-Mar Notes Receivable 40200 Accounts Receivable - Black Tie Co. 40200 9-May Cash 40736 Interest Revenue 536 Notes Receivable 40200 10-Jun Accounts Receivable - Holen 14200 Sales 14200 10-Jun Cost of Mercandise sold 8520 Mercandise Inventory 8520 15-Jun Notes Receivable 24000 Cash 24000 20-Jun Cash 14200 Sales discount 284 Accounts Receivable - Holen 14484 15-Jul Notes Receivable 24000 Cash 120 Interest Revenue 120 Notes Receivable 24000 13-Sep Cash 24360 Interest Revenue 360 Notes Receivable 24000 13-Sep Accounts Receivable - Wycoff Co. 40000 Sales 40000 13-Sep Cost of Mercandise sold 24000 Mercandise Inventory 24000 12-Oct Notes Receivable 40000 Accounts Receivable - Wycoff Co. 40000 11-Dec Accounts Receivable - Wycoff Co. 40400 Interest Revenue 400 Notes Receivable 40000 26-Dec Cash 40602 Interest Revenue 202 Accounts Receivable - Wycoff Co. 40400

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