Prepare journal entries to record the following transactions entered into by Val
ID: 2453667 • Letter: P
Question
Prepare journal entries to record the following transactions entered into by Valente Company:
2014
June
1
Received a $10,000, 12%, 1-year note from Andrea Foley as full payment on her account.
Nov.
1
Sold merchandise on account to Patton, Inc. for $12,000, terms 2/10, n/30.
Nov.
5
Patton, Inc. returned merchandise worth $500.
Nov.
9
Received payment in full from Patton, Inc.
Dec.
31
Accrued interest on Foley's note.
2015
June
1
Andrea Foley honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2015.
2014
June
1
Received a $10,000, 12%, 1-year note from Andrea Foley as full payment on her account.
Nov.
1
Sold merchandise on account to Patton, Inc. for $12,000, terms 2/10, n/30.
Nov.
5
Patton, Inc. returned merchandise worth $500.
Nov.
9
Received payment in full from Patton, Inc.
Dec.
31
Accrued interest on Foley's note.
2015
June
1
Andrea Foley honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2015.
Explanation / Answer
Date Title Debit credit 2014 1 jun Note receivable 10,000 Accounts receivable 10,000 [being note received ] nov 1 Accounts receivable 12000 sales 12000 [being goods sold on credit] nov 5 sales return /sales 500 Accounts receivable 500 [being merchandise returned ] nov 9 Cash 11500 Accounts receivable 11500 [Being payment received from receivables (12000-500] 31 dec Interest receivable (10000*.12*7/12] 700 Interest revenue 700 [being accrued interest recorded] 1 june CAsh 11200 Note receivable 10000 Interest 1200 [Being note payment received]