Connect Enroll Add or Drop Classes rate of 103 The 8000 pays

Connect Enroll, Add, or Drop Classes rate of 103. The $8,000 paysent is due on Karch 31, 2019 acount for cash discounts 0 Tranatezzed zeceirables of 58,050 0a factoz vithout reeourse The faeser charged tranaferred. The The bank\'s discouns Einance change on Journal entry worksheet a.

Solution

ANS

1) JOURNAL ENTRIES

DATE PARTICULARS DR($) CR($)

FEB28 NOTES RECEIVABLE A/C DR 10000

TO SALES REVENUE A/C 10000

(BEING MERCHANDISE SOLD)

MAR21 NOTES RECEIVABLE A/C DR 8000

TO DISCOUNT A/C(8000*10%) 800

TO SALES REVENUE A/C 7200

(BEING MERCHANDISE SOLD)

MARCH21 DISCOUNT A/C DR 800

TO INTEREST REVENUE A/C 800

(BEING DISCOUNT TRANSFERRED)

MARCH21 CASH A/C DR 8000

TO NOTES RECEIVABLE A/C 8000

(BEING CASH RECEIVED)

APR2 ACCOUNTS RECEIVABLE DR 7000

TO SALES REVENUE A/C 7000

(BEING MERCHANDISE SOLD)

APR11 CASH A/C DR 6860

SALES DISCOUNT A/C DR 140

TO ACCOUNTS RECEIVABLE A/C 7000

(BEING CASH RECEIVED)

APR17 SALES RETURN A/C DR 5000

TO ACCOUNTS RECEIVABLE A/C 5000

(BEING GOODS RETURNED)

APR17 INVENTORY A/C DR 2200

TO COST OF GOODS SOLD A/C 2200

(BEING INVENTORY TRANSFERRED)

APR20 CASH A/C (99%*$50000) DR 49500

LOSS ON SALE OF RECEIVABLES A/C DR 500

TO ACCOUNTS RECEIVABLE A/C 50000

(BEING CASH RECEIVED)

JUNE30 INTEREST RECEIVABLE A/C DR 333

TO INTEREST REVENUE A/C 333

(BEING INTEREST RECEIVED)

JUNE30 CASH A/C DR 102666

LOSS ON SALE OF NOTE RECEIVABLE A/C DR 67

TO INTEREST RECEIVABLE A/C 333

TO NOTE RECEIVABLE A/C 10000

(BEING CASH ENTRY)

SEPT31 NO ENTRY

2)

DEC31 DISCOUNT A/C DR 600

TO INTEREST REVENUE A/C 600

(BEING ADJUSTING ENTRY RECORDED)

3) SCHEDULE

TOTAL EFFECT = $(10000+7200+7000-140-5000+2200-500+333-67+600)

= $21626