1 - 1. P repare general journal ent r ies to record the...

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1. Prepare general journal entries to record the following transactions for Baby Trails Toy Inc Date Transaction 02/03/09 Accepted a 90 day (3 month), 10% note for $14,000 from Thumbelina & Co. on account from a sale on 01/02/09 02/04/09 Sold merchandise on account to Teddy Bears, Inc. for $12,500.00 02/09/09 Received $1,000.00 of the amount due from Teddy Bears, Inc. from the 02/04/09 03/22/09 Accepted a 60 day (2 month), 8% per p.a. for the remaining balance on the Teddy Bear, Inc account from the 02/04/09 sale. 04/30/09 Wrote off the Tots R Us account balance of $12,000 as uncollectible after receiving news that the company declared bankruptcy. Baby Trails Toys uses the allowance method for account for uncollectible Accounts. 05/21/09 Received payment in full from Teddy Bears, Inc. related to 02/04 sales 06/02/09 Purchased $4,000.00 of merchandise inventory on account from Plumes, Inc. with terms 2/10, n/30, and FOB shipping point. Freight charge associated with the purchase was $225.00
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This note was uploaded on 09/08/2011 for the course ACCOUNTING 101 taught by Professor Bayne during the Winter '10 term at University of California, Berkeley.

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1 - 1. P repare general journal ent r ies to record the...

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