Ask Question
28 November, 03:15

On January 1, 2017, Sheridan Company had Accounts Receivable of $57,400 and Allowance for Doubtful Accounts of $3,400. Sheridan Company 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, 10% promissory note from Rian Company for balance due.

12 Sold $10,000 of merchandise to Cato Company and accepted Cato's $10,000, 2-month, 9% note for the balance due.

26 Sold $11,900 of merchandise to Malcolm Co., terms n/10.

Apr. 5 Accepted a $11,900, 3-month, 8% note from Malcolm Co. for balance due.

12 Collected Cato Company note in full.

June 2 Collected Rian Company note in full.

15 Sold $2,000 of merchandise to Gerri Inc. and accepted a $2,000, 6-month, 11% note for the amount due.

Journalize the transactions. (Omit cost of goods sold entries.)

+2
Answers (1)
  1. 28 November, 05:45
    0
    See Explanation Below

    Explanation:

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

    Dr Accounts receivable (AR) $4,500

    Cr Sales $4,500

    Feb. 2 Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due

    Dr Notes receivable $4,500

    Cr AR $4,500

    12 Sold $10,000 of merchandise to Cato Company and accepted Cato's $10,000, 2-month, 9% note for the balance due.

    Dr Notes receivable $10,000

    Cr Sales $10,000

    26 Sold $11,900 of merchandise to Malcolm Co., terms n/10.

    Dr AR $11,900

    Cr Sales $11,900

    Apr. 5 Accepted a $11,900, 3-month, 8% note from Malcolm Co. for balance due.

    Dr Notes receivable $11,900

    Cr AR $11,900

    12 Collected Cato Company note in full.

    Dr Cash 10,150

    Cr Notes receivable 10,000

    Cr Interest revenue 150 ($10,000 x 9% x 2/12)

    June 2 Collected Rian Company note in full.

    Dr Cash 4,650

    Cr Notes receivable 4,500

    Cr Interest revenue 150 ($4,500 x 10% x 4/12)

    15 Sold $2,000 of merchandise to Gerri Inc. and accepted a $2,000, 6-month, 11% note for the amount due

    Dr Notes receivable $2,000

    Cr Sales $2,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On January 1, 2017, Sheridan Company had Accounts Receivable of $57,400 and Allowance for Doubtful Accounts of $3,400. Sheridan Company ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers