Question

4. Journalize the following transactions in the accounts of Simmons Company:

Mar. 1: Received a $60,000, 60-day, 6% note dated March 1 from Bynum Co. on account. Mar. 18: Received a $25,000, 60-day, 9% note dated March 18 from Solo Co. on account. Apr. 30: The note dated March 1 from Bynum Co. is dishonored, and the customer’s account is charged for the note, including interest. May 17: The note dated March 18 from Solo Co. is dishonored, and the customer’s account is charged for the note, including interest. July 29: Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Co. on April 30. Aug. 23: Wrote off against the allowance account the amount charged to Solo Co. on May 17 for the dishonored note dated March 18.

Answer 1