Posted in On January 1, 2012, Pierre Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Stacy Richter Company. It is a 4-month, 12% note dated December 31, 2011. Pierre Company prepares financial statements annually. During the year, the following selected transactions occurred.
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Jan. |
5 |
Sold $20,000 of merchandise to Bernard Company, terms n/15. |
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20 |
Accepted Bernard Company’s $20,000, 3-month, 9% note for balance due. |
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Feb. |
18 |
Sold $8,000 of merchandise to LaBamba Company and accepted LaBamba’s $8,000, |
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6-month, 9% note for the amount due. |
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Apr. |
20 |
Collected Bernard Company note in full. |
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30 |
Received payment in full from Stacy Richter Company on the amount due. |
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May |
25 |
Accepted Cloppy Inc.’s $4,000, 3-month, 7% note in settlement of a past-due balance on account. |
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Aug. |
18 |
Received payment in full from LaBamba Company on note due. |
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25 |
The Cloppy Inc. note was dishonored. Cloppy Inc. is not bankrupt; future payment is anticipated. |
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Sept. |
1 |
Sold $12,000 of merchandise to Bessie Lou Company and accepted a $12,000, 6-month, |
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10% note for the amount due. |
Instructions
Journalize the transactions.
