Prepare general journal entries for the following transactions of Norman Company, assuming they use the allowance method to account for uncollectible accounts. Apr 01Sold $3,500 of merchandise to Lance Co., receiving an 8%, 90-day, $3,500 note. 15Wrote off $1,500 owed by Guy Co. from a previous period sale. 30Received a $5,000, 6%, 30-day note receivable from James Co. as settlement for its $5,000 account receivable.May 30The note received from James on April 30 was collected in full.Jun 30Lance Co. was unable to pay the note on the due date.Jul 15Guy 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 |
Business
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