Prepare general journal entries for the following transactions of Norman Company, assuming they use the allowance method to account for uncollectible accounts.Apr. 01 Sold $3,500 of merchandise to Lance Co., receiving an 8%, 90-day, $3,500 note.15 Wrote off $1,500 owed by Guy Co. from a previous period sale.30 Received a $5,000, 6%, 30-day note receivable from James Co. as settlement for its $5,000 account receivable.May 30 The note received from James on April 30 was collected in full.Jun. 30 Lance Co. was unable to pay the note on the due date.Jul. 15 Guy Co. paid $1,000 of the amount written off on April 15.
What will be an ideal response?
| Apr. | 1 | Notes Receivable | 3,500 | ? |
| ? | ? | Sales | ? | 3,500 |
| ? | ? | ? | ? | ? |
| ? | 15 | Allowance for Doubtful Accounts | 1,500 | ? |
| ? | ? | Accounts Receivable-Guy | ? | 1,500 |
| ? | ? | ? | ? | ? |
| ? | 30 | Notes Receivable | 5,000 | ? |
| ? | ? | Accounts Receivable-James | ? | 5,000 |
| ? | ? | ? | ? | ? |
| May | 30 | Cash | 5,025 | ? |
| ? | ? | Notes Receivable | ? | 5,000 |
| ? | ? | Interest Revenue ($5,000 * .06 * 30/360) | ? | 25 |
| ? | ? | ? | ? | ? |
| June | 30 | Account Receivable-Lance | 3,570 | ? |
| ? | ? | Notes Receivable | ? | 3,500 |
| ? | ? | Interest Revenue ($3,500 * .08 * 90/360) | ? | 70 |
| ? | ? | ? | ? | ? |
| July | 15 | Accounts Receivable-Guy | 1,000 | ? |
| ? | ? | Allowance for Doubtful Accounts | ? | 1,000 |
| ? | 15 | Cash | 1,000 | ? |
| ? | ? | Accounts Receivable-Guy | ? | 1,000 |
You might also like to view...
The goal of workplace surveillance is to alleviate productivity concerns and discourage employees from looking up personal banking information or viewing pornography at work?
a. alleviate productivity concerns b. discourage employees from looking up personal banking information c. discourage employees from viewing pornography at work d. all of the above
Clay and Lora each invest $15,000 in Deyer, Inc and are given shares of stock as evidence of their ownership interest. What effect does this transaction have on the accounting equation of Deyer?
A) Assets and liabilities increase B) Assets and contributed capital increase C) Liabilities increase and retained earnings decrease D) Assets and liabilities decrease
Pricing can be used to
A) change available supply. B) reduce supply chain costs. C) influence demand if customers are price sensitive. D) all of the above
Fact Pattern 50-1ANikita owns land in Ohio. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses.Refer to Fact Pattern 50-1A. Nikita's ownership interest is
A. a fee simple absolute. B. a leasehold estate. C. a life estate. D. an easement.