Question

Prepare journal entries to record the following transactions entered into by the Nash's Trading Post, LLC: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

2021
June	1		Received a $10,000, 6%, 1-year note from Dan Gore as full payment on his account.
Nov.	1		Sold merchandise on account to Barlow, Inc., for $16,000, terms 2/10, n/30.
Nov.	5		Barlow, Inc., returned merchandise worth $1,000.
Nov.	9		Received payment in full from Barlow, Inc.
Dec.	31		Accrued interest on Gore's note.
2022
June	1		Dan Gore honored his promissory note by sending the face amount plus interest.

Date	Account Titles and Explanation	Debit	Credit
2021
June 1Nov. 1Nov. 5Nov. 9Dec. 31	Enter an account title to record the receipt of the note	Enter a debit amount	Enter a credit amount
	Enter an account title to record the receipt of the note	Enter a debit amount	Enter a credit amount
June 1Nov. 1Nov. 5Nov. 9Dec. 31	Enter an account title to record sale on account to Barlow	Enter a debit amount	Enter a credit amount
	Enter an account title to record sale on account to Barlow	Enter a debit amount	Enter a credit amount
June 1Nov. 1Nov. 5Nov. 9Dec. 31	Enter an account title to record the return of merchandise from Barlow	Enter a debit amount	Enter a credit amount
	Enter an account title to record the return of merchandise from Barlow	Enter a debit amount	Enter a credit amount
June 1Nov. 1Nov. 5Nov. 9Dec. 31	Enter an account title to record the payment from Barlow	Enter a debit amount	Enter a credit amount
	Enter an account title to record the payment from Barlow	Enter a debit amount	Enter a credit amount
	Enter an account title to record the payment from Barlow	Enter a debit amount	Enter a credit amount
June 1Nov. 1Nov. 5Nov. 9Dec. 31	Enter an account title to record accrued interest on Gore's note	Enter a debit amount	Enter a credit amount
	Enter an account title to record accrued interest on Gore's note	Enter a debit amount	Enter a credit amount
2022
June 1Nov. 1Nov. 5Nov. 9Dec. 31	Enter an account title to record collection of Gore's note and interest	Enter a debit amount	Enter a credit amount
	Enter an account title to record collection of Gore's note and interest	Enter a debit amount	Enter a credit amount
	Enter an account title to record collection of Gore's note and interest	Enter a debit amount	Enter a credit amount
	Enter an account title to record collection of Gore's note and interest	Enter a debit amount	Enter a credit amount

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. 2021 Jun.1 $ 10,000.00 $ 10,000.00 Notes Receivable Accounts Receivable (To record Note received in exchange of payment for accounts receivable) Nov.1 $ 16,000.00 Accounts Receivable Sales Revenue (To record Sales on account) 16,000.00 Nov.5 $ 1,000.00 Sales Returns and Allowance Accounts Receivable (To record Sales Returns) $ 1,000.00 Nov.9 14,700.00 300.00 Cash Merchandise Inventory ($15000 x 2%) Accounts Receivable ($16000-$1000) (To record Collection of receivables) $ 15,000.00 350.00 Dec.31 Interest Receivable ($10,000 x 6% x 7months/12months) Interest Income (To record accrued Interest Income) 350.00

2022 Jun.1 $ 10,600.00 Cash Interest Receivable Interest Income ($10000x6%x5months/12months) Note Receivable (To record Collection of due along with Interest) 350.00 250.00 10,000.00