Question

ro-STA (DOOK/static) Question Help Sleepy Recliner Chairs completed the following selected transactions: (Click the icon to view the transactions.) Record the transactions in the journal of Sleepy Recliner Chairs. Explanations are not required. (Round to the nearest dollar) (Record debits first, then credits. Exclude explanations from journal entries. For notes stated in days, use a 365-day year.) Begin with the transactions for 2018. Jul. 1: Sold inventory to Stan-Mart, receiving a $41,000, nine-month, 8% note. Ignore Cost of Goods Sold. Date Accounts Debit Credit 2018 Jul. 1 Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Journal Entries:

Date	Accounts	Debit	Credit
Jul. 1, 2018	Notes Receivable - Stan - Mart	$41,000
	Sales Revenue		$41,000
	(To record the sales revenue for accepting a 8% note in return)
Oct. 31, 2018	Cash	$24,00
	Sales Revenue		$24,00
	(To record the cash sales)
Dec. 31, 2018	Interest Receivable	$1,640
	Interest Revenue ($41,000*8/100*6/12 months)		$1,640
	(To record the interest earned from July 1st to Dec. 31st)
Dec. 31, 2018	Bad Debt Expense	$2,000
	Allowance for Bad Debts ($13,800 - $11,800)		$2,000
	(To record the bad debt expense after adjusting the credit balance in allowance for bad debts account)
Apr. 1, 2019	Cash ($41,000 + $1,640 + [$41,000*8/100*3/12 months])	$43,460
	Interest Revenue ($41,000*8/100*3/12 months)		$820
	Interest Receivable		$1,640
	Notes Receivable - Stan - Mart		$41,000
	(To record the amount collected along with interest on the note on maturity)
Jun. 23, 2019	Notes Receivable - Appeal, Corp.	$7,000
	Sales Revenue		$7,000
	(To record the sales revenue for accepting a 6% note in return)
Aug. 22, 2019	Accounts Receivable - Appeal, Corp. ($7,000 + [$7,000*6/100*2/12 months)	$7,070
	Interest Revenue ($7,000*6/100*2/12 months)		$70
	Notes Receivable - Appeal, Corp.		$7,000
	(To record the dishonoring of 6% note and converting into accounts receivable)
Nov. 16, 2019	Notes Receivable - Crosby, Inc.	$17,000
	Cash		$17,000
	(To record the issue of 16% note)
Dec. 5, 2019	Cash	$7,070
	Accounts Receivable - Appeal, Corp.		$7,070
	(To record the full amount collection from Appeal. Corp.)
Dec. 31, 2019	Interest Receivable	$340
	Interest Revenue ($17,000*16/100*1.5/12 months)		$340
	(To record the accrual of interest on the note)