Problem 9-7A On January 1, 2017, Harter Company had Accounts Receivable $139,400

Question

Problem 9-7A On January 1, 2017, Harter Company had Accounts Receivable $139,400, Notes Recelvable $46,800, and Allowance for Doubtful Accounts $35,800. The note receivable is from Willingham Company. It is a 4 month, 7% note dated December 3, 2016 Harter Company prepares financial statements an air at Dece ne er n orng the year the fo k ng steaea oana on occurred. Jan. 5 20 Feb. 18 Apr. 20 Sold $42,000 of merchandise to Sheidon Company, terms nv1S Accepted Sheldon Company's $42,000, 3-month, 6% note for balance due. Sold $31,200 of merchandise to Patwary Company and accepted Patwary's S31,200, 6month, 7% note for the amount due. Collected Sheldon Company note in full 30 Recelved payment in full from Willingham Company on the amount due May 2S Aug. 18 25 Sept. 1 Accepted Potter Inc.'s $27,200. 3-month, 7% note in settlement of a patdue balance on acount. Received payment in full from Patwary Company on note due. The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated Sold $10,600 of merchandise to Starbrough Company and accepted a $10,600, 6-month, 8% note for the amount due ournalize the transactions. (Credit account titles are automatically indented when amount is entered. Do nat indent manually, Record journal entries in the order presented i

Explanation / Answer

Date

General Journal

Debit

Credit

Jan.5

Accounts Receivable

$42,000

Sales Revenue

$42,000

Jan.20

Notes Receivable

$42,000

Accounts Receivable

$42,000

Feb.18

Notes Receivable

$31,200

Sales Revenue

$31,200

April.20

Cash

$42,630

Notes Receivable

$42,000

Interest Revenue (42000*6%*3/12)

$630

April.30

Cash

Notes Receivable

$46,800

Interest Revenue (42000*7%*4/12)

$1,092

May.25

Notes Receivable

$27,200

Accounts Receivable

$27,200

Aug.18

Cash

$32,292

Notes Receivable

$31,200

Interest Revenue (31200*7%*6/12)

$1,092

Aug.25

Accounts Receivable

$27,676

Notes Receivable

$27,200

Interest Revenue (27200*7%*3/12)

$476

Sept.1

Notes Receivable

$10,600

Sales Revenue

$10,600

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Date

General Journal

Debit

Credit

Jan.5

Accounts Receivable

$42,000

Sales Revenue

$42,000

Jan.20

Notes Receivable

$42,000

Accounts Receivable

$42,000

Feb.18

Notes Receivable

$31,200

Sales Revenue

$31,200

April.20

Cash

$42,630

Notes Receivable

$42,000

Interest Revenue (42000*6%*3/12)

$630

April.30

Cash

Notes Receivable

$46,800

Interest Revenue (42000*7%*4/12)

$1,092

May.25

Notes Receivable

$27,200

Accounts Receivable

$27,200

Aug.18

Cash

$32,292

Notes Receivable

$31,200

Interest Revenue (31200*7%*6/12)

$1,092

Aug.25

Accounts Receivable

$27,676

Notes Receivable

$27,200

Interest Revenue (27200*7%*3/12)

$476

Sept.1

Notes Receivable

$10,600

Sales Revenue

$10,600

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