BUS1A ch 9

okoka

Main

Home >Homework Answsers >Business & Finance homework help >Accounting homework help

P9-7A

Prepare entries for various receivable transactions.

On January 1, 2017, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2016. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.


Jan.	5	Sold $20,000 of merchandise to Sheldon Company, terms n/15.
	20	Accepted Sheldon Company's $20,000, 3-month, 8% note for balance due.
Feb.	18	Sold $8,000 of merchandise to Patwary Company and accepted Patwary's $8,000, 6-month, 9% note for the amount due.
Apr.	20	Collected Sheldon Company note in full.
	30	Received payment in full from Willingham Company on the amount due.
May	25	Accepted Potter Inc.'s $6,000, 3-month, 7% note in settlement of a past-due balance on account.
Aug.	18	Received payment in full from Patwary Company on note due.
	25	The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept.	1	Sold $12,000 of merchandise to Stanbrough Company and accepted a $12,000, 6-month, 10% note for the amount due.