Question

On January 1, 2017, Waterway Industries had Accounts Receivable of $53,500 and Allowance for Doubtful Accounts of $3,800. Waterway Industries prepares financial statements annually. During the year, the following selected transactions occurred:

Jan.  5 Sold $3,200 of merchandise to Rian Company, terms n/30.
Feb.  2 Accepted a $3,200, 4-month, 9% promissory note from Rian Company for balance due.
12 Sold $12,180 of merchandise to Cato Company and accepted Cato’s $12,180, 2-month, 10% note for the balance due.
26 Sold $12,500 of merchandise to Malcolm Co., terms n/10.
Apr.  5 Accepted a $12,500, 3-month, 7% note from Malcolm Co. for balance due.
12 Collected Cato Company note in full.
June  2 Collected Rian Company note in full.
15 Sold $1,900 of merchandise to Gerri Inc. and accepted a $1,900, 6-month, 13% note for the amount due.

Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date
Account Titles and Explanation
Debit
Credit
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Choose a transaction date

Jan. 5
Feb. 2
Feb. 12
Feb. 26
Apr. 5
Apr.12
June 2
June 15
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount

Answer 1

Date	Accounting titles & Explanations				Debit	Credit
5-Jan	Account receivable-Rian				3,200
	Sales					3,200
2-Feb	Note receivable				3,200
	Account receivable-Rian					3,200
12-Feb	Note receivable-Cato				12,180
	Sales					12,180
26-Feb	Account receivable-Malcolm co				12,500
	Sales					12,500
5-Apr	note recievable				12,500
	Account receivable-Malcolm co					12,500
12-Apr	Cash				12,383
	note receivable-cato					12,180
	interest income		(12180*10%*2/12)			203
2-Jun	Cash				3,296
	note receivable-rian					3,200
	interest income		(3,200*9%*4/12)			96
15-Jun	Note receivable-gerri inc				1900
	Sales					1,900