Answered

Prepare journal entries to record the following transactions entered into by the Ayayai Corp.: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
2021
June 1 Received a $12,000, 8%, 1-year note from Dan Gore as full payment on his account.
Nov. 1 Sold merchandise on account to Barlow, Inc., for $16,000, terms 3/10, n/30.
Nov. 5 Barlow, Inc., returned merchandise worth $1,300.
Nov. 9 Received payment in full from Barlow, Inc.
Dec. 31 Accrued interest on Gore's note.
2022
June 1 Dan Gore honored his promissory note by sending the face amount plus interest.

Answer :

TomShelby

Answer:

note receivables    12,000 debit

    accounts receivables    12,000 credit

--to record reception of note from Dan Gore to settle his account--

Accounts receivables     16000 debit

         Sales revenues                   16.000 credit

--to record sale in account--

sales returns&allowance    1,300 debit

          Accounts receivables       1,300 credit

--to record returned goods--

cash           14,259 debit

sales discount 441 debit

     Accounts receivable      14,700 credit

--to record payment from Barlow--

cash       12,960 debit

  interest revenue     960 credit

  note receivable   12,000 credit

--to record collection of promissory note from Dan Gore--

Explanation:

Barlow invoice transactions:

16,000   invoice nominal

- 1,300  returned goods

14,700  amount subject to discount of 3%

  - 441  discount as collected within first ten days

14,259 cash proceeds

Dan Gore promissory note:

principal x rate x time

12,000 x 8% per year x 1 year = 960 interest revenue

total 12,000 + 960 = 12,960

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