Problem 4. On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for...
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Accounting
Problem 4. On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for doubtful accounts $10,000. Carly Company prepares financial statements annually. During the year the following selected transactions occurred.
Jan. 5
Sold $12,000 of merchandise to Sam Company, terms n/30.
Feb. 2
Accepted a $12,000, 4-month, 10% promissory note from Sam Company for the balance due.
12
Sold $15,000 of merchandise to Neville Company and accepted Neville's $15,000, 2-month, 10% note for the balance due.
Apr. 12
Collected Neville Company note in full.
June 2
Collected Sam Company note in full.
July 15
Sold $11,000 of merchandise to Hutchinson Co. and accepted Hutchinson's $11,000, 3-month, 12% note for the amount due.
Oct. 15
Hutchinson Co.'s note was dishonored. Hutchinson Co. is bankrupt, and there is no hope of future settlement.
Instructions
Journalize the transactions.
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