Question

On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500. Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $4,500 of merchandise to Rian Company, terms n/30. Feb. 2 Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due. 12 Sold $14,400 of merchandise to Cato Company and accepted Cato's $14,400, 2-month, 10% note for the balance due. 26 Sold $5,700 of merchandise to Malcolm Co., terms n/10. Apr. 5 Accepted a $5,700, 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, 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 indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

Date	Account Title	Debit	Credit
Jan 5	Accounts receivable	$4,500
	Sales		$4,500
	(To record sales)
Feb 2	Notes Receivable	$4,500
	Accounts receivable		$4,500
	(To record notes receivable)
Feb 12	Notes Receivable	$14,400
	Sales		$14,400
	(To record sales)
Feb 26	Accounts receivable	$5,700
	Sales		$5,700
	(To record sales)
Apr 5	Notes Receivable	$5,700
	Accounts receivable		$5,700
	(To record notes receivable)
Apr 12	Cash	$14,640
	Interest Income [($14400 x 10%)/12*2]		$240
	Notes Receivable		$14,400
	(To record receipt of notes receivable)
June 2	Cash	$4,650
	Interest Income [($4500 x 10%)/12*4]		$150
	Notes Receivable		$4,500
	(To record receipt of notes receivable)
June 15	Notes Receivable	$2,100
	Sales		$2,100
	(To record sales)