Question

On January 1, 2017, Bonita Industries had Accounts Receivable of $53,100 and Allowance for Doubtful Accounts of $3,600. Bonita Industries prepares financial statements annually. During the year, the following selected transactions occurred:

Jan. 5 Sold $4,500 of merchandise to Rian Company, terms n/30.

Feb. 2 Accepted a $4,500, 4-month, 8% promissory note from Rian Company for balance due.

Feb 12 Sold $11,520 of merchandise to Cato Company and accepted Cato’s $11,520, 2-month, 10% note for the balance due.

Feb 26 Sold $11,600 of merchandise to Malcolm Co., terms n/10.

Apr. 5 Accepted a $11,600, 3-month, 8% note from Malcolm Co. for balance due.

Apr. 12 Collected Cato Company note in full.

June 2 Collected Rian Company note in full.

June 15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.

Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit

Answer 1

Answer:

                                  Journal Entry

Date             Account and Explanation         Debit   Credit

Jan 5                 Account receivable                 4500  

                                 Sales revenue                               4500

                              (To record sales)  

Feb 2                    Notes receivable                   4500  

                            Account receivable                               4500

                   (To record notes receivable)  

Feb 12                   Notes receivable                 11520  

                                Sales revenue                                        11520

                              (To record sales)  

Feb 26                    Account receivable        11600  

                                Sales revenue                                        11600

                              (To record sales)  

Apr 5                      Notes receivable            11600  

                                Account receivable                                 11600

                         (To record notes receivable)  

Apr 12                            Cash                           11712  

                                       Notes receivable                         11520

                                      Interest revenue                          192

                          (To record amount received)

June 2                             Cash                           4620  

                                   Notes receivable                                 4500

                                    Interest revenue                                  120

                         (To record amount collect)  

June 15                       Notes receivable            2100  

                                        Sales revenue                               2100

                                      (To record sales)