23. On January 1,2007,R company had Accounts Receivable $146,000, notes Receivable $15,000,and Allowance for doubutful accounts $13,200. The notes receivable is from the ABC company. It is a 4-month, 12% note dated December 31, 2006. Uptown company prepares financial statements annually. Durring the year the following transactions accurred.

Question

Jan.5. Sold $12,000 of merchandise to G company, terms n/15.
20. Accepted G company 12,000, 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.
Apirl.20. Collected G company note in full.
30. Received payments in full from ABC company on the amount due.
May.25. Accepted XYZ company $7,000,3-month, 8% note in settlement of a past-due balance on account.
Aug.18. Received payments in in full from S company on note due.
25. The XYZ company note was dishonored. XYZ Co. Is not bankrupt and futures 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.

Answer 1

Jan 5:
Accounts Receivable (G company) 12,000
Sales 12,000

Jan 20:
Notes Receivable (G company) 12,000
Accounts Receivable (G company) 12,000

Feb 18:
Accounts Receivable (S company) 8,000
Sales 8,000

Apr 20:
Cash 12,360
Interest Revenue 360
Notes Receivable (G company) 12,000

Apr 30:
Cash 15,750
Accounts Receivable (ABC company) 15,000
Interest Revenue 750

May 25:
Accounts Receivable (XYZ company) 7,000
Sales 7,000

Aug 18:
Cash 8,400
Interest Revenue 400
Accounts Receivable (S company) 8,000

Sept 1:
Notes Receivable (Y company) 10,000
Accounts Receivable (Y company) 10,000