Question

3)

Journalize the following transactions in the accounts of Simmons Company: (1 1/2pts each) Mar. 1 Received a $60,000, 60-day, 6% note dated March 1 from Bynum Company on account. Mar. 18 Received a $25,000, 60-day, 9% note dated March 18 from Solo Company on account. Apr. 30 The note dated March 1 from Bynum Company is dishonored, and the customer's account is charged for the note, including interest. May 17 The note dated March 18 from Solo Company is dishonored, and the customer's account is charged for the note, including interest. July 29 Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Company on April 30. Aug. 23 Wrote off against the allowance account the amount charged to Solo Company on May 17 for the dishonored note dated March 18. Journal

Answer 1

ANSWER

		DR
Mar-01	Notes Receivable	60,000
	Accounts Receivable		60,000
Mar-18	Notes Receivable	25,000
	Accounts Receivable		25,000
Apr. 30	Accounts Receivable	60,600
	Notes Receivable		60,000
	Interest Revenue + 60000*2/12*6%		600
May-17	Accounts Receivable	25,375
	Notes Receivable		25,000
	Interest Revenue 25000*9%*2/12		375
Jul-29	Cash	61,812
	Accounts Receivable		60,600
	Interest Revenue 60,600 x 8% x 90/360		1,212
Aug. 23	Allowance for Doubtful Accounts	25,375
	Accounts Receivable		25,375

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