P8-6A 0n January 1,2017, Harvee Company had Accounts Receivable of $54,200 and A
ID: 2572943 • Letter: P
Question
P8-6A 0n January 1,2017, Harvee Company had Accounts Receivable of $54,200 and Al lowance for Doubtful Accounts of $3,700. Harvee Company prep Jourmalize various receivables transactions (LO 1, 3), AP ares financial statements annually. During the year, the following selected transactions occurred. Jan. Feb. Sold $4,000 of merchandise to Rian Company, terms n/30, Accepted a $4,000, balance due. Sold $12,000 of merchandise to Cato Company and accepted Cato's $12,000, 2-month, 10% note for the balance due. 5 2 4-month, 9% promissory note from Rian Company for 12 26 Sold $5,200 of merchandise to Malcolm Co., terms n/10. 5 12 Collected Cato Company note in full. 2 15 Sold $2,000 of merchandise to Gerri Inc. and accepted a $2,000, 6-month, Accepted a $5,200, 3-month, 8% note from Malcolm Co. for balance due. Collected Rian Company note in full. 12% note for the amount due. Apr. June Instructions Journalize the transactions. (Omit cost of goods sold entries.)Explanation / Answer
JOURNAL ENTRIES:
Jan-05 Dr. Account Receivable-Ross Company 4,000 Cr. Sales Revenue 4,000 Feb-02 Dr. Notes Receivable 4,000 Cr. Account Receivable-Ross Company 4,000 Feb-12 Dr. Notes Receivable 12,000 Cr. Sales Revenue 12,000 Feb-26 Dr. Account Receivable-Meachum Company 5,200 Cr. Sales revnue 5,200 Apr-05 Dr. Notes Receivable 5,200 Cr. Account Receivable-Meachum Company 5,200 Apr-12 Dr. Cash 12,200 Cr. Notes Receivable 12,000 Cr. Interest Revenue 200 (12000 * 10% * 2/12) Jun-02 Dr. Cash 4,120 Cr. Notes Receivable 4,000 Cr. Interest Revenue 120 (4,000*9%*4/12) Jun-15 Dr. Notes Receivable 2,000 Cr. Sales Revenue 2,000Related Questions
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