Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 12,000 treats at $3 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6 percent, payable in 9 months. A. Compute the interest expense due when Barkers honors the note. Feedback B. Show the entry to record the payment of the short-term note on December 4. If an amount box does not require an entry, leave it blank. Dec. 4 Short-Term Notes Payable v Interest Expense v Cash
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- Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6%, payable in 9 months. Show the entries for the initial purchase, the partial payment, and the conversion.Mystic Magic issued a $120,250 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 9.6% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 25% of its value. Record the journal entries for Mystic Magic for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on November 10, 2018Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
- Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityBarkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 21,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6 percent, payable in 9 months. Show the entries for the initial purchase, the partial payment, and the conversion. If an amount box does not require an entry, leave it blank. Feb 2. _________ _________ _________ _________ _________ _________ Feb. 28 _________ _________ _________ _________ _________ _________ Mar. 4 _________ _________ _________ _________ _________ _________Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 8,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6 percent, payable in 9 months. A. Compute the interest expense due when Barkers honors the note. B. Show the entry to record the payment of the short-term note on December 4. If an amount box does not require an entry, leave it blank. Dec. 4 Accounts Payable Accounts Receivable Cash Interest Expense Short-Term Notes Payable
- Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 22,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6 percent, payable in 9 months. A. Compute the interest expense due when Barkers honors the note. $fill in the blank 0b17d404a07307c_1 B. Show the entry to record the payment of the short-term note on December 4. If an amount box does not require an entry, leave it blank. Dec. 4 fill in the blank e53baff85fb6013_2 fill in the blank e53baff85fb6013_3 fill in the blank e53baff85fb6013_5 fill in the blank e53baff85fb6013_6 fill in the blank e53baff85fb6013_8 fill in the blank e53baff85fb6013_9Mystic Magic issued a $140,000 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.4% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 35% of its value. Record the journal entries for Mystic Magic for the following transactions. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. A. Initial sale on January 1, 2018 B. Dishonored note entry on Oct 1, 2018 C. Receivable sale on November 10, 2018 A. Jan. 1, 2018Mystic Magic issued a $130,000 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 15% of its value. Record the journal entries for Mystic Magic for the following transactions. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. A. Initial sale on January 1, 2018 B. Dishonored note entry on Oct 1, 2018 C. Receivable sale on November 10, 2018 A. Jan. 1, 2018 B. Oct. 1, 2018 C. Nov. 10, 2018 Accounts Receivable: Arnold Cash Factoring Expense Interest Revenue Sales Revenue II III 111
- Mystic Magic issued a $170,000 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 9.8% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 25% of its value. Record the journal entries for Mystic Magic for the following transactions. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. A. Initial sale on January 1, 2018 B. Dishonored note entry on Oct 1, 2018 C. Receivable sale on November 10, 2018 A. Jan. 1, 2018 - Select - - Select - - Select - - Select - B. Oct. 1, 2018 - Select - - Select - - Select - - Select - - Select - - Select - C. Nov. 10, 2018 - Select - - Select -On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by Maymay Incorporated as security for a loan of P750,000. Hello charged a 3% commission on the accounts; the interest rate on the note is 12%. During December, Maymay collected P350,000 on assigned accounts after deducting P560 of discounts. Maymay wrote off a P530 assigned account. On December 31, Maymay remitted to Hello the amount collected plus one month's interest on the note. REQUIRED: 1.) How much is Maymay's equity in the assigned accounts receivable as of December 31?On November 30, accounts receivable in the amount of P900,000 were assigned to Lopez Finance Co. by Llido as security for a loan of P750,000. Lopez charged a 3% commission on the accounts; the interest rate on the note is 12%. During December, Llido collected P350,000 on assigned accounts after deducting P560 of discounts. Llido wrote off a P530 assigned account. On December 31, Llido remitted to Lopez the amount collected plus one month's interest on the note. 21. How much is Llido’s equity in the assigned accounts receivable as of December 31?