P9-78 On January 1, 2012, DeCarlo Company had Accounts Receivable $98,000 and Allow-ance for Doubtful Accounts $8,100. DeCarlo Company prepares financial statements annually.
During the year, the following selected transactions occurred.
Jan. 5 Sold $10,800 of merchandise to Kelly Company, terms n/30.
Feb. 2 Accepted a $10,800, 4-month, 10\% promissory note from Kelly Company for the balance due.
12 Sold $13,500 of merchandise to Raymond Company and accepted Raymond's $13,500, 2-month, 10\% note for the balance due.
26 Sold $7,000 of merchandise to Ringspin Co., terms n/10.
Apr. 5 Accepted a $7,000, 3-month, 8\% note from Ringspin Co. for the balance due.
12 Collected Raymond Company note in full.
June 2 Collected Kelly Company note in full.
July 5 Ringspin Co. dishonors its note of April 5. It is expected that Ringspin will eventually pay the amount owed.
15 Sold $12,000 of merchandise to Butter Co. and accepted Butter's $12,000, 3-month, 12\% note for the amount due.
Oct. 15 Butter Co.'s note was dishonored. Butter Co. is bankrupt, and there is no hope of future settlement.
Instructions
Journalize the transactions.
