Question

		PRINCIPLE	RATE	TIME
A.		45,000	12%	90 days		1,332
B.		50,000	13%	4 months		2,167
C.		55,000	14%	5 months		3,208
D.		60,000	15%	180 days		4,438

Prepare the journal entries to reflect these transactions.
A.	We sold merchandise on account to a customer:					25,000
B.	Customer pays on account:					9,000
C.	Customer refuses to pay, so write off amount owing.
D.	Customer agrees to make a payment on the note.					11,000

Answer 1

Journal Entries
Events	Particulars			Debit	Credit
A.	Accounts Receivable			$ 25,000.00
	To Sales				$ 25,000.00
B.	Cash			$   9,000.00
	To Accounts Receivable				$   9,000.00
C.	Allowance for Doubtful A/c			$ 16,000.00
	To Accounts Receivable				$ 16,000.00
D.	Accounts Receivable			$ 11,000.00
	To Allowance for Doubtful A/c				$ 11,000.00
	Notes Receivable			$ 11,000.00
	To Accounts Receivable				$ 11,000.00