Please help! On January 1, 2017, Harter Company had Accounts Receivable $125,800
ID: 2464115 • Letter: P
Question
Please help!
On January 1, 2017, Harter Company had Accounts Receivable $125,800, Notes Receivable $46,800, and Allowance for Doubtful Accounts $35,800. The note receivable is from Willingham Company. It is a 4-month, 7% note dated December 31, 2016. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.
JOURNALIZE THE TRANSACTIONS
Jan. 5 Sold $41,200 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon Company’s $41,200, 3-month, 6% note for balance due. Feb. 18 Sold $30,600 of merchandise to Patwary Company and accepted Patwary’s $30,600, 6-month, 7% note for the amount due. Apr. 20 Collected Sheldon Company note in full. 30 Received payment in full from Willingham Company on the amount due. May 25 Accepted Potter Inc.’s $26,000, 3-month, 7% note in settlement of a past-due balance on account. Aug. 18 Received payment in full from Patwary Company on note due. 25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. Sept. 1 Sold $12,400 of merchandise to Stanbrough Company and accepted a $12,400, 6-month, 8% note for the amount due.Explanation / Answer
Date
Description
Debit
Credit
Jan 5
Accounts receivable
$41,200
To Sales
$41,200
Jan 20
Notes receivable
$41,200
To Account receivable
$41,200
Feb 18
Note receivable
$30,600
To Sales
$30,600
April 20
Cash
$41,818
To Note receivable
$41,200
To interest income
(41,200 @6%*3/12)
618
April 30
Cash
$47,892
To Note receivable
$46,800
To interest income
(46,800@7%*4/12)
1,092
May 25
Note receivable
$26,000
To Account receivable
$26,000
August 18
Cash
$31,671
Note receivable
$30,600
To interest income
(30,600@7%*6/12)
1,071
August 25
Account receivable
$26,455
To Note receivable
$26,000
To interest income
(26,000@7%*3/12)
455
September 1
Note receivable
$12,400
To Sales
$12,400
Date
Description
Debit
Credit
Jan 5
Accounts receivable
$41,200
To Sales
$41,200
Jan 20
Notes receivable
$41,200
To Account receivable
$41,200
Feb 18
Note receivable
$30,600
To Sales
$30,600
April 20
Cash
$41,818
To Note receivable
$41,200
To interest income
(41,200 @6%*3/12)
618
April 30
Cash
$47,892
To Note receivable
$46,800
To interest income
(46,800@7%*4/12)
1,092
May 25
Note receivable
$26,000
To Account receivable
$26,000
August 18
Cash
$31,671
Note receivable
$30,600
To interest income
(30,600@7%*6/12)
1,071
August 25
Account receivable
$26,455
To Note receivable
$26,000
To interest income
(26,000@7%*3/12)
455
September 1
Note receivable
$12,400
To Sales
$12,400