Question

BURUNUN gnment CALCULATOR PRINTER VERSION BACK NEXT Question 17 On January 1, 2020, Crane Company had Accounts Receivable $136,700, Notes Receivable $33,600, and Allowance for Doubtful Accounts $23,000. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Crane Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 20 Feb. 18 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $28,400 of merchandise to Sheldon Company, terms 1/15. Accepted Sheldon Company's $28,400, 3-month, 8% note for balance due. Sold $16,600 of merchandise to Patwary Company and accepted Patwary's $16,600, 6-month, 9% note for the amount due. Collected Sheldon Company note in full. Received payment in full from Willingham Company on the amount due. Accepted Potter Inc.'s $13,200, 3-month, 7% note in settlement of a past-due balance on account. Received payment in full from Patwary Company on note due. The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. Sold $13,800 of merchandise to Stanbrough Company and accepted a $13,800, 6-month, 10% note for the amount due Journalize the transactions. (Omit cost of goods sold entries.) (Credit account tities are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Debit Credit Date Account Titles and Explanation Version 4.24.17.1 m/edugen/shared/assignment/test/agliniona. Ing All Rights Reserved. A Division of John Wiley & Sons. Ing 190770 WTXO8-9 LULE

Answer 1

SOLUTION

Date	Accounts titles and Explanation	Debit ($)	Credit ($)
Jan.5	Account Receivable	28,400
	Sales		28,400
Jan.20	8% Note receivable	28,400
	Account Receivable		28,400
Feb.18	9% Note receivable	16,600
	Sales		16,600
April 20	Cash	28,968
	Interest Revenue (28,400*8%*3/12)		568
	8% Note receivable		28,400
April 30	Cash	34,608
	Interest Revenue (33,600*9%*4/12)		1,008
	9% Note receivable		33,600
May 25	7% Note receivable	13,200
	Account Receivable		13,200
Aug.18	Cash	17,347
	Interest Revenue (16,600*9%*6/12)		747
	9% Note receivable		16,600
Aug.25	Accounts Receivable	13,431
	Interest Revenue (13,200*7%*3/12)		231
	7% Note receivable		13,200
Sept.1	10% Note receivable	13,800
	Sales		13,800