On January 1, 2017, Harter Company had Accounts Receivable $140,700, Notes Recei
ID: 2543227 • Letter: O
Question
On January 1, 2017, Harter Company had Accounts Receivable $140,700, Notes Receivable $33,600, and Allowance for Doubtful Accounts $22,900. The note receivable is from Willingham Company. It is a 4-month, 8% 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. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 5 Sold $28,400 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon Company’s $28,400, 3-month, 7% note for balance due. Feb. 18 Sold $18,200 of merchandise to Patwary Company and accepted Patwary’s $18,200, 6-month, 8% 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 $14,800, 3-month, 6% 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 $10,100 of merchandise to Stanbrough Company and accepted a $10,100, 6-month, 9% note for the amount due.Explanation / Answer
Date Account titles & Explanations Debit Credit 5-Jan Account receivable-sheldon 28,400 sales 28,400 20-Jan Note receivable 28,400 Account receivable-sheldon 28,400 18-Feb Note receivable-patwary 18,200 sales 18,200 20-Apr Cash 28,897 interest income (28400*7%*3/12) 497 note receivable 28,400 30-Apr Cash 34,496 interest income (33600*8%*4/12) 896 note receivable 33,600 25-May Note receivable 14,800 Account receivable -Potter incs 14,800 18-Aug Cash 18,928 interest income (18200*8%*6/12) 728 note receivable 18,200 25-Aug account receivable-potter incs 15,022 interest income (14800*6%*3/12) 222 note receivable 14,800 1-Sep note receivable 10,100 sales 10,100