17. On January 1, 2007, R company had Accounts Receivable $146,000, notes receivable $15,000, Allowance for Doubtful Accounts $13,200, the note receivable is from the ABC company. It is a 4-month, 12% note dated December 31,2006. Uptown company prepares financial statements annually. During the year the following transactions accurred.
Jan. 5. Sold $12,000 of merchandise to G company, terms n15.
Jan.20. Accepted G company's12,000, 3-month, 9% note for balance due.
Feb.18. Sold $8,000 of merchandise to S company and accepted S's $8,000, 6-month, 10% note for the amount due.
April 20. Collected G company note in full. 30. Received payment in full from ABC company on the amount due.
May. 25. Accepted XYZ company's $7,000, 3-month, 8%note in settlement of a past due balance on account.
Aug. 18. Received payment in full from S company on note due.
Aug.25. The xyz company note was dishonored. XYZco. Is not bankrupt and future payment is anticipated.
Sept.1. Sold $10,000 of merchandise to Y company and accepted a $10,000, 6-month, 10% note for the amount due.
Instructions.
Journalize the transactions.
In the above question!
18. What is the due date of 90-days note issued on January 8.2008?
19. What is the due date of 30-days note issued on may 15?
20. What is the maturity date of a 2-month note dated July 31?
Journal Entries:
Jan. 5:
Accounts Receivable 12,000
Sales 12,000
Jan. 20:
Notes Receivable 12,000
Accounts Receivable 12,000
Feb. 18:
Notes Receivable 8,000
Accounts Receivable 8,000
April 20:
Cash 12,000
Notes Receivable 12,000
(To record the collection of G company note)
April 30:
Cash 15,000
Notes Receivable 15,000
(To record the collection of ABC company note)
May 25:
Notes Receivable 7,000
Accounts Receivable 7,000
Aug. 18:
Cash 8,000
Notes Receivable 8,000
(To record the collection of S company note)
Sept. 1:
Notes Receivable 10,000
Accounts Receivable 10,000
18. The due date of a 90-day note issued on January 8, 2008, would be April 7, 2008.
19. The due date of a 30-day note issued on May 15 would be June 14.
20. The maturity date of a 2-month note dated July 31 would be September 30.