Question

On January 1, 2017, Bonita Industries had Accounts Receivable of $53,100 and Allowance for Doubtful Accounts of $3,600. Bonita Industries prepares financial statements annually. During the year, the following selected transactions occurred:

Jan. 5 Sold $4,500 of merchandise to Rian Company, terms n/30.

Feb. 2 Accepted a $4,500, 4-month, 8% promissory note from Rian Company for balance due.

Feb 12 Sold $11,520 of merchandise to Cato Company and accepted Cato’s $11,520, 2-month, 10% note for the balance due.

Feb 26 Sold $11,600 of merchandise to Malcolm Co., terms n/10.

Apr. 5 Accepted a $11,600, 3-month, 8% note from Malcolm Co. for balance due.

Apr. 12 Collected Cato Company note in full.

June 2 Collected Rian Company note in full.

June 15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% 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

Answer 1

Journal entry

Date	account and explanation	debit	credit
Jan 5	Account receivable	4500
	Sales revenue		4500
	(To record sales)
Feb 2	Notes receivable	4500
	Account receivable		4500
	(To record notes receivable)
Feb 12	Notes receivable	11520
	Sales revenue		11520
	(To record sales)
Feb 26	Account receivable	11600
	Sales revenue		11600
	(To record sales)
Apr 5	Notes receivable	11600
	Account receivable		11600
	(To record notes receivable)
Apr 12	Cash	11712
	Notes receivable		11520
	Interest revenue		192
	(To record amount received)
June 2	Cash	4620
	Notes receivable		4500
	Interest revenue		120
	(To record amount collect)
June 15	Notes receivable	2100
	Sales revenue		2100
	(To record sales)