Question

not regl More Info gnore c 2018 Jul. Cred 1 Sold merchandise inventory to Great - Mart, receiving a $45,000, nine-month, 8% note. Ignore Cost of Goods Sold. 31 Recorded cash sales for the period of $18,000. Ignore Cost of Goods Oct Sold. Dec 31 Made an adjusting entry to accrue interest on the Great-Mart note. 31 Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $13,500 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $11,600 2019 Apr. 1 Collected the maturity value of the Great-Mart note Jun 23 Sold merchandise inventory to Ambiance, Corp., receiving a 60-day. 9% note for $8.000. Ignore Cost of Goods Sold. Aug 22 Ambiance. Corp. dishonored its note at maturity, the business converted the maturity value of the note to an account receivable. Nov. 16 Loaned $19.000 cash to Crane, Inc., receiving a 90-day, 12% note Dec 5 Collected in full on account from Ambiance, Corp. 31 Accrued the interest on the Crane, Inc. note. Print Done Klick CheckAL Clear All DELL

Answer 1

Date	Accounts	Debit	Credit
2018		$	$
July 1	Notes Receivable : Great-Mart	45,000
	Sales Revenue		45,000
Oct 31	Cash	18,000
	Sales Revenue		18,000
Dec 31	Interest Receivable	1,800
	Interest Revenue		1,800
Dec 31	Bad Debt Expense	1,900
	Allowance for Bad Debts		1,900
2019
Apr 1	Cash	47,700
	Notes Receivable : Great-Mart		45,000
	Interest Receivable		1,800
	Interest Revenue		900
June 23	Note Receivable:: Ambiance Corp.	8,000
	Sales Revenue		8,000
Aug 22	Accounts Receivable	8,120
	Notes Receivable: Ambiance Corp		8,000
	Interest Revenue		120
Nov 16	Notes Receivable: Crane Inc.	19,000
	Cash		19,000
Dec 5	Cash	8,120
	Accounts Receivable		8,120
Dec 31	Interest Receivable ( 19,000 x 12 % x 45 / 360 )	285
	Interest Revenue		285