Problem 9-6A Sales and Notes Receivable Transactions
The following were selected from among the transactions completed by Sorento Co. during the current year. Sorento Co. sells and installs home and business security systems.
Jan. 5 Loaned $17,500 cash to Marc Jager, receiving a 90-days, 8% note.
Feb. 4 Sold merchandise on account to Tedra & Co., $19,000. The cost of merchandise sold was $11,000
Feb. 13 Sold merchandise on account to Centennial Co., $30,000. The cost of merchandise was $17,600.
Mar. 6 Accepted a 60-days, 6% note for $19,000 from Tedra & Co. on account
Mar. 14. Accepted a 60-day,9% note for $30,000 from Centennial Co, on account.
Apr. 5 Received the interest due from Marc Jager and a new 120-day,9% note as a renewal of the loan of January 5. (Record both the debit and credit to the notes receivable account.)
May. 5 Received from Tedra & Co. the amount due on the note of March 6.
May 13. Centennial Co. dishonored its note dated on March 14.
July. 12. Received from Centennial Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note.
Aug 13. Received from Marc Jager the amount due on his note of April 5.
Sept 7. Sold merchandise on account to Lock-It Co., $9,000.The cost of merchandise sold was $5,000
Sept 17. Received from Lock-It Co, the amount of the invoice of September 7, less 1% discount.
Instructions:
Journalize the transactions. Assume 360 days in a year.
Click here for the solution: The following were selected from among the transactions completed by Sorento Co. during the current year
