On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500. Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $4,500 of merchandise to Rian Company, terms n/30. Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due. Sold $14,400 of merchandise to Cato Company and accepted Cato's $14,400, 2-month, 10% note for the balance due. Sold $5,700 of merchandise to Malcolm Co., terms n/10. Accepted a $5,700, 3-month, 8% note from Malcolm Co. for balance due. Feb. 2 12 26 Apr. 5 12 Collected Cato Company note in full. June 2 Collected Rian Company note in full. 15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.
On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500. Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $4,500 of merchandise to Rian Company, terms n/30. Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due. Sold $14,400 of merchandise to Cato Company and accepted Cato's $14,400, 2-month, 10% note for the balance due. Sold $5,700 of merchandise to Malcolm Co., terms n/10. Accepted a $5,700, 3-month, 8% note from Malcolm Co. for balance due. Feb. 2 12 26 Apr. 5 12 Collected Cato Company note in full. June 2 Collected Rian Company note in full. 15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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![On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500.
Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred:
Sold $4,500 of merchandise to Rian Company, terms n/30.
Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due.
Sold $14,400 of merchandise to Cato Company and accepted Cato's $14,400, 2-month, 10% note for the balance due.
Sold $5,700 of merchandise to Malcolm Co., terms n/10.
Accepted a $5,700, 3-month, 8% note from Malcolm Co. for balance due.
Jan. 5
Feb. 2
12
26
Apr. 5
12
Collected Cato Company note in full.
June 2
Collected Rian Company note in full.
15
Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bd9f696-4be0-4d90-944f-d3d9c0462325%2F877861b1-f268-497b-badc-623c0263dfe0%2Fvpdkljl_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for Doubtful Accounts of $3,500.
Nash's Trading Post, LLC prepares financial statements annually. During the year, the following selected transactions occurred:
Sold $4,500 of merchandise to Rian Company, terms n/30.
Accepted a $4,500, 4-month, 10% promissory note from Rian Company for balance due.
Sold $14,400 of merchandise to Cato Company and accepted Cato's $14,400, 2-month, 10% note for the balance due.
Sold $5,700 of merchandise to Malcolm Co., terms n/10.
Accepted a $5,700, 3-month, 8% note from Malcolm Co. for balance due.
Jan. 5
Feb. 2
12
26
Apr. 5
12
Collected Cato Company note in full.
June 2
Collected Rian Company note in full.
15
Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.
![Jan. 5
Accounts Receivable
4500
Sales Revenue
4500
Feb. 2
Notes Receivable
4500
Accounts Receivable
4500
Feb. 12
Notes Receivable
14400
Accounts Receivable
14400
Feb. 26
Accounts Receivable
5700
Sales Revenue
5700
Apr. 5
Notes Receivable
5700
Accounts Receivable
5700
Apr.12
Cash
14640
Notes Receivable
14400
Interest Revenue
240
June 2
Cash
4650
Notes Receivable
4500
Interest Revenue
150
June 15
Notes Receivable
2100
Accountc Rocoivablo.
2100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bd9f696-4be0-4d90-944f-d3d9c0462325%2F877861b1-f268-497b-badc-623c0263dfe0%2Fqa7fzln_processed.png&w=3840&q=75)
Transcribed Image Text:Jan. 5
Accounts Receivable
4500
Sales Revenue
4500
Feb. 2
Notes Receivable
4500
Accounts Receivable
4500
Feb. 12
Notes Receivable
14400
Accounts Receivable
14400
Feb. 26
Accounts Receivable
5700
Sales Revenue
5700
Apr. 5
Notes Receivable
5700
Accounts Receivable
5700
Apr.12
Cash
14640
Notes Receivable
14400
Interest Revenue
240
June 2
Cash
4650
Notes Receivable
4500
Interest Revenue
150
June 15
Notes Receivable
2100
Accountc Rocoivablo.
2100
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