Question

Problem 8-06A On January 1, 2022, Kingbird, Inc. had Accounts Receivable of $49,900 and Allowance for Doubtful Accounts of $3,500. Kingbird, Inc. prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $3,450 of merchandise to Rian Company, terms n/30. Feb. 2 Accepted a $3,450, 4-month, 8% promissory note from Rian Company for balance due 12 Sold $11,800 of merchandise to Cato Company and accepted Cato's $11,800, 2-month, 9 % note for the balance due. 26 Sold $5,300 of merchandise to Malcolm Co., terms n/10. Apr. 5 Accepted a $5,300, 3-month, 8 % note from Malcolm Co. for balance due. 12 Collected Cato Company note in full. June 2 Collected Rian Company note in full. 15 Sold $2,200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 11 % note for the amount due. Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not inder manually. Record journal entries in the order presented in the problem.)

Answer 1

Hi

Let me know in case you face any issue:

Naming convention is not available, can be slightly different: Solution: Credit Date Jan.05 Debit 3,450 $ $ 3,450 Feb.02 $ 3,450 $ 3,450 Feb.12 $ 11,800 $ 11,800 Feb.26 $ 5,300 $ 5,300 Jounal entries Account title and explaination Accounts Receivable (Ryan co) Sales Revenue (To record the sales on account) Note Receivable (8%) Accounts Receivable (Ryan co) (To record the note on account) Note Receivable (9%) Sales Revenue (To record the sales on note) Accounts Receivable (Malcolm co) Sales Revenue (To record the sales on account) Note Receivable (8%) Accounts Receivable (Malcolm co) (To record the note on account) Cash (plug) Interest Revenue (11800*9%)/12*2 Note Receivable (9%) (To record the collection of 9% note from cato co) Cash (plug) Interest Revenue (3450*8%)/12*4 Note Receivable (8%) (To record the collection of 8% note from Ryan co) Note Receivable (11%) Sales Revenue (To record the sales on note) Apr.05 $ 5,300 $ 5,300 Apr.12 $ 11,977 $ $ 177 11,800 un.02 3,542 $ $ 92 3,450 Jun. 15 $ 2,200 $ 2,200