XYZ Company completed the following selected transactions:

XYZ Company completed the following selected transactions:

2018 Jul. 1 Sold merchandise inventory to Go-Mart, receiving a $43,000, nine-month, 16% note. Ignore Cost of Goods Sold. Oct. 31 Recorded cash sales for the period of $23,000. Ignore Cost of Goods Sold. Dec. 31 Made an adjusting entry to accrue interest on the Go- Mart note. 31 Made an adjusting entry to record bad debts expense based on an aging of accounts receivable. The aging schedule shows that $14,900 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10,700. 2019 Apr. 1 Collected the maturity value of the Go-Mart note. Jun. 23 Sold merchandise inventory to Allure, Corp., receiving a 60-day, 6% note for $7,000. Ignore Cost of Goods Sold. Aug. 22 Allure, Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Nov. 16 Loaned $20,000 cash to Tench, Inc., receiving a 90-day, 8% note. Dec. 5 31 Collected in full on account from Allure, Corp. Accrued the interest on the Tench, Inc. note. Record the transactions in the journal of XYZ. Explanations are not required. (Round to the nearest dollar.) Provide all of the journal entries:

Answers

                                            2018

Date    Account Tiles                          Debit$       Credit$

Jul.1     Notes receivable- Gp-Mart     43,000

                 Sales                                                     43,000

Oct.31  Cash                                         23,000

                  Sales                                                     23,000  

Dec.31  Interest Receivable                 3,440  

                   Interest revenue                                   3,440  

             (43,000*16%*6/12)

Dec.31   Bad Debt Expense                 4,200  

                    Allowance for Bad Debt                    4,200  

              (14,900 - 10,700)

                                           2019

Date    Account Tiles                                Debit$     Credit$

Apr.1     Cash                                             48,160  

                    Notes receivable- Gp-Mart                   43,000  

                    Interest Revenue                                   1,720 (43,000*16%*3/12)

                    Interest Receivable                                3,440  

Jun.23  Note Receivable- Allure, Corp   7,000  

                    Sales                                                        7,000  

Aug.22  Accounts receivable -Allure, Corp 7,070  

                   Note Receivable- Allure, Corp                7,000  

                    Interest revenue                                      70 (7,000*6%*60/360)

Nov.16Note receivable - Tench . Inc     20,000

                    Cash                                                           20,000  

Dec.5      Cash                                             7,070  

                     Accounts receivable -Allure, Corp          7,070  

Dec.31     Interest Receivable                     200

                     Interest revenue                                        200  

               (20,000*8%*45/360)

the answer is 10c + 6b = 32

step-by-step explanation:

the third answer is correct.

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