On January 1, 2014, Morfitt Company had Accounts Receivable $98,000 and Allowance for Doubtful Accounts $8,100. Morfitt Company prepares financial statements annually. During the year, the following selected transactions occurred.
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Jan. 5 |
Sold $10,800 of merchandise to Motte Company, terms n/30. |
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Feb. 2 |
Accepted a $10,800, 4-month, 9% promissory note from Motte Company for the balance due. |
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12 |
Sold $13,500 of merchandise to Gitchel Company and accepted Gitchel”s $13,500, 2-month, 8% note for the balance due. |
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26 |
Sold $9,000 of merchandise to Benedict Co., terms n/10. |
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Apr. 5 |
Accepted a $9,000, 3-month, 8% note from Benedict Co. for the balance due. |
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12 |
Collected Gitchel Company note in full. |
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June 2 |
Collected Motte Company note in full. |
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July 5 |
Benedict Co. dishonors its note of April 5. It is expected that Benedict will eventually pay the amount owed. |
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15 |
Sold $12,000 of merchandise to Kriley Co. and accepted Kriley”s $12,000, 3-month, 12% note for the amount due. |
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Oct. 15 |
Kriley Co.”s note was dishonored. Kriley Co. is bankrupt, and there is no hope of future settlement. |
Instructions
Journalize the transactions.