60.1K

Verified Solution

Link Copied!

Would be reported on the balance sheet at that date. P8-30A Accounting for uncollectible accounts (aging-of-receivables method), credit card sales, notes receivable, and accrued interst revenue Learnin Quality Recliner Chairs completed the following selected transactions: Dec. 31, 53,600 2016 Jul. 1 Sold merchandise inventory to Gray Mart, receiving a $45,000 nine-month 16% note. Ignore Cost of Goods Sold. Recorded credit and debit card sales for the period of $23,000. Use the gross method. Ignore Cost of Goods Sold Card processor drafted company's checking account for processing fee of S Made an adjusting entry to accrue interest on the Gray Mart note. Made an adjusting entry to record bad debts expense based on an aging of accounts receivable. The aging schedule shows that $15,200 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $11,400. Oct. 31 Nov. 3 Dec. 31 31 460 2017 Apr. 1 Collected the maturity value of the Gray Mart note Sold merchandise inventory to Artist Company receiving a 60-day, 6% note for $8,000. Ignore Cost of Goods Sold. Artist Company dishonored its note at maturity, the business converted the maturity value of the note to an account receivable. Loaned $22,000 cash to Creed Company receiving a 90-day, 12% note. Jun, 23 Aug. 22 Nov. 16 Dec. 5 Collected in full on account from Artist Company 31 Accrued the interest on the Creed Company note. Record the transactions in the journal of Quality required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.) Recliner Chairs. Explanations are not

Answer & Explanation Solved by verified expert

See Answer