Question

Quality

Recliner Chairs completed the following selected​ transactions:

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​(Click the icon to view the​ transactions.)Record the transactions in the journal of

Quality

Recliner Chairs. Explanations are not required.​ (Round to the nearest​ dollar.) ​(Record debits​ first, then credits. Exclude explanations from journal entries. For notes stated in​ days, use a

365​-day

​year.)Begin with the transactions for

2018.

Jul.​ 1: Sold inventory to

Great−Mart​,

receiving a

$45,000​,

​nine-month,

10%

note. Ignore Cost of Goods Sold.

Date			Accounts	Debit	Credit
2018
Jul. 1			Note Receivable—Great-Mart	45,000
			Sales Revenue		45,000

Oct.​ 31: Recorded cash sales for the period of

$18,000.

Ignore Cost of Goods Sold.

Date			Accounts	Debit	Credit
2018
Oct. 31			Cash	18,000
			Sales Revenue		18,000

Dec.

31​:

Made an adjusting entry to accrue interest on the

Great−Mart

note.

Date			Accounts	Debit	Credit
2018
Dec. 31			Interest Receivable
			Interest Revenue

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2018
Jul.	1		Sold merchandise inventory to Great−Mart​, receiving a $45,000​, ​nine-month, 10% note. Ignore Cost of Goods Sold.
Oct.	31		Recorded cash sales for the period of $18,000. Ignore Cost of Goods Sold.
Dec.	31		Made an adjusting entry to accrue interest on the Great−Mart note.
	31		Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $14,900 of accounts receivable will not be collected. Prior to this​ adjustment, the credit balance in Allowance for Bad Debts is $10,900.
2019
Apr.	1		Collected the maturity value of the Great−Mart note.
Jun.	23		Sold merchandise inventory to Ambiance, ​Corp., receiving a​ 60-day, 12% note for $6,000. Ignore Cost of Goods Sold.
Aug.	22		Ambiance, Corp. dishonored its note at​ maturity; the business converted the maturity value of the note to an account receivable.
Nov.	16		Loaned $23,000 cash to Crenshaw​, ​Inc., receiving a​ 90-day, 8% note.
Dec.	5		Collected in full on account from Ambiance, Corp.
	31		Accrued the interest on the Crenshaw​, Inc. note.

Answer 1