Question

Question 3 View Policies Current Attempt in Progress On January 1, 2022, Wildhorse Co. had Accounts Receivable of $56,700 and Allowance for Doubtful Accounts of $3,800 Wildhorse Co. prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $3,200 of merchandise to Rian Company, terms 1/30, Feb. 2 Accepted a $3,200, 4-month, 9% promissory note from Rian Company for balance due. Sold $13,200 of merchandise to Cato Company and accepted Cato's $13,200, 2-month, 11% note for the balang 12 due. 26 Sold $5,300 of merchandise to Malcolm Co., terms 1/10, 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 $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 12% note for the amount due. Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount entered. Do not indent manually. Record journal entries in the order presented in the problem.) Credit

Answer 1

SOLUTION:

Date	Particulars	Debit	Credit
Jan-05	Accounts Receivable	3,200
	Sales revenue		3,200
Feb-02	Notes receivable	3,200
	Accounts Receivable		3,200
Feb-12	Notes receivable	13,200
	Sales revenue		13,200
Feb-26	Accounts Receivable	5,300
	Sales revenue		5,300
Apr-05	Notes receivable	5,300
	Accounts Receivable		5,300
Apr-12	Cash	13,442
	Notes receivable		13,200
	Interest revenue (13200 * 11% * 2/12)		242
Jun-02	Cash	3,296
	Notes receivable		3,200
	Interest revenue (3200 * 9% * 4/12)		96
Jun-15	Notes receivable	2,100
	Accounts Receivable		2,100