Question

Current Attempt in Progress On January 1,2019, Pharoah Company had Accounts Receivable $136,100, Notes Receivable $39,600, and Allowance for Doubtful Accounts $29,500 The note receivable is from Willingham Company. It is a 4-month, 9 % note dated December 31, 2018. Pharoah Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold $34,700 of merchandise to Sheldon Company, terms n/15 20 Accepted Sheldon Company's $34,700, 3-month, 8 % note for balance due. Feb. 18 Sold $24,200 of merchandise to Patwary Company and accepted Patwary's $24,200, 6-month, 99% note for the amount due. Apr. 20 Collected Sheldon Company note in full 30 Recelved payment in full from Willingham Company on the amount due. May 25 Accepted Potter Inc's $21,600, 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 $10,500 of merchandise to Stanbrough Company and accepted a $10,500, 6-month, 10 % note for the amount due. Journalize the transactions. (Omit cost of goods sold entries.) (Round intermediate calculations to 2 decimal ploces, eg. 15.25 and final answers to 0 decimal places, eg. 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) Credit Debit Account Titles and Explanation Date

Answer 1

Journal Entries:

Date	Account title and explanation	Debit	Credit
Jan 5	Accounts receivable-Sheldon	$34,700
	Sales revenue		$34,700
	[To record sales revenue]
Jan 20	Notes receivable-Sheldon	$34,700
	Accounts receivable-Sheldon		$34,700
	[To record notes for accounts receivable]
Feb 18	Notes receivable-Patway	$24,200
	Accounts receivable-Patway		$24,200
	[To record notes for sales]
Apr 20	Cash	$35,394
	Notes receivable-Sheldon		$34,700
	Interest revenue [34,700 x 8% x 3/12]		$694
	[To record collection for notes receivable]
Apr 30	Cash	$40,788
	Notes receivable-Willingham		$39,600
	Interest revenue [$39,600 x 9% x 4/12]		$1,188
	[To record collection for notes receivable]
May 25	Notes receivable-Potter	$21,600
	Accounts receivable-Potter		$21,600
	[To record notes for accounts receivable]
Aug 18	Cash	$25,289
	Notes receivable-Willingham		$24,200
	Interest revenue [$24,200 x 9% x 6/12]		$1,089
	[To record collection for notes receivable]
Aug 25	Accounts receivable-Potter	$21,978
	Notes receivable-Potter		$21,600
	Interest revenue [$21,600 x 7% x 3/12]		$378
Sept. 1	Notes receivable-Stanbrough	$10,500
	Sales revenue		$10,500
	[To record sale revenue in exchange of notes]