P9-7A and P10-3A - Problems P9-7A and P10-3A 2 Financial...

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Problems P9-7A and P10-3A 2 $56,900 and Allowance for Doubtful Accounts $4,700 Bettendorf Company prepares financials statements annually. During the year the following selected transactions occurred: 1/5/06 Sold $6,900 of merchandise to John Yockey Company, terms n/30. 2/2/06 Accepted a $6,900 4-month, 10% promissory note from John Yockey Company for the balance due. 2/12/06 Sold $7,800 of merchandise to Skosey Company and accepted Skosey's $7,800 2-month 10% note for the balance due. 2/26/06 Sold $3,000 of merchandise to Platz Co., terms n/10. 4/5/06 Accepted a $3,000 3-month, 8% promissory note from Platz Co. for the balance due. 4/12/06 Collected the Skosey Company note in full. 6/2/06 Collected the John Yockey Company note in full. 7/5/06 Platz Co. dishonors its note of April 5. It is expected that Platz will eventually pay the amount owed. 7/15/06 Sold $7,000 of merchandise to King Company and accepted King's $7,000 3-month 12% note for the balance due. 10/15/06 King Co.'s note was dishonored. King Co. is bankrupt, and there no hope of future settlement. Instructions: Journalize the transactions. 1/5/06 Accounts Receivable - John Yockey Co. 6,900 Sales 6,900 (To record sales on account ) 2/2/06 Notes Receivable 6,900 Accounts Receivable - John Yockey Co. 6,900 (To record acceptance of John Yockey Co. note) 2/12/06 Notes Receivable 7,800 Sales 7,800 (To record note accepted for merchandise sold - Skosey) 2/26/06 Accounts Receivable - Platz Co. 3,000 Sales 3,000 (To record sales on account) 4/5/06 Notes Receivable 3,000 Accounts Receivable - Platz Co. 3,000 (To record acceptance of Platz Co. note)
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This note was uploaded on 07/12/2008 for the course ACC 363 taught by Professor Rossi during the Spring '08 term at University of Phoenix.

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P9-7A and P10-3A - Problems P9-7A and P10-3A 2 Financial...

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