Marin Ltd. started the year with a balance owing from Stratford Inc. of $31,200. After several phone calls, on Feb. 1, 2021, Stratford offered to sign a 5% note for the balance owing. The note is due May 1, 2021. Marin has a calendar year end and adjusts its accounts monthly. On May 5, Marin Ltd. was notified that Stratford Inc. went bankrupt and would not be paying off its debts. Required: Prepare all journal entries and month-end adjusting entries from Feb. 1, 2021 to May 5, 2021 for Marin Ltd.

Marin Ltd. started the year with a balance owing from Stratford Inc. of $31,200. After several phone calls, on Feb. 1, 2021, Stratford offered to sign a 5% note for the balance owing. The note is due May 1, 2021. Marin has a calendar year end and adjusts its accounts monthly. On May 5, Marin Ltd. was notified that Stratford Inc. went bankrupt and would not be paying off its debts. Required: Prepare all journal entries and month-end adjusting entries from Feb. 1, 2021 to May 5, 2021 for Marin Ltd.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
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