On January 1, 2022, Swifty Corporation had Accounts Receivable of $51,900 and Allowance for Doubtful Accounts of $3,400. Swifty Corporation prepares financial statements annually. During the year, the following selected transactions occurred. Jan. 5 Feb. 2 12 26 Apr. 5 12 June 2 15 Sold $4,200 of merchandise to Rian Company, terms n/30. Accepted a $4,200,4-month, 9% promissory note from Rian Company for balance due. Sold $12,600 of merchandise to Cato Company and accepted Cato's $12,600, 2-month, 10% note for the balance due. Sold $5,500 of merchandise to Malcolm Co., terms n/10. Accepted a $5,500, 3-month, 8% note from Malcolm Co. for balance due. Collected Cato Company note in full. Collected Rian Company note in full. Sold $2.200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 12% note for the amount due.
On January 1, 2022, Swifty Corporation had Accounts Receivable of $51,900 and Allowance for Doubtful Accounts of $3,400. Swifty Corporation prepares financial statements annually. During the year, the following selected transactions occurred. Jan. 5 Feb. 2 12 26 Apr. 5 12 June 2 15 Sold $4,200 of merchandise to Rian Company, terms n/30. Accepted a $4,200,4-month, 9% promissory note from Rian Company for balance due. Sold $12,600 of merchandise to Cato Company and accepted Cato's $12,600, 2-month, 10% note for the balance due. Sold $5,500 of merchandise to Malcolm Co., terms n/10. Accepted a $5,500, 3-month, 8% note from Malcolm Co. for balance due. Collected Cato Company note in full. Collected Rian Company note in full. Sold $2.200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 12% note for the amount due.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Don't give answer in image format
Transcribed Image Text:Journalize the transactions. (Omit cost of goods sold entries.) (Do not round intermediate calculations. Round final answers to O decimal
places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in
the order presented in the problem.)
Account Titles and Explanation
Date
Debit
Credit
Transcribed Image Text:On January 1, 2022, Swifty Corporation had Accounts Receivable of $51,900 and Allowance for Doubtful
Accounts of $3,400. Swifty Corporation prepares financial statements annually. During the year, the following
selected transactions occurred.
Jan. 5
Feb. 2
12
26
Apr. 5
12
June 2
15
Sold $4,200 of merchandise to Rian Company, terms n/30.
Accepted a $4,200,4-month, 9% promissory note from Rian Company for balance due.
Sold $12,600 of merchandise to Cato Company and accepted Cato's $12,600, 2-month, 10 % note
for the balance due.
Sold $5,500 of merchandise to Malcolm Co., terms n/10.
Accepted a $5,500, 3-month, 8% note from Malcolm Co. for balance due.
Collected Cato Company note in full.
Collected Rian Company note in full.
Sold $2,200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 12% note for the amount
due.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education