Question

1) Journalize the transactions.( Omit cost of goods sold entries.)

On January 1, 2020, Oriole Company had Accounts Receivable $142,700, Notes Receivable $37,200, and Allowance for Doubtful Accounts $26,900. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019, Oriole Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Sold $31,800 of merchandise to Sheldon Company, terms n/15. Accepted Sheldon Company's $31,800, 3-month, 8% note for balance due. Sold $21,600 of merchandise to Patwary Company and accepted Patwary's $21,600, 6- Jan. 5 20 Feb. 18 month, 9% note for the amount due Collected Sheldon Campany note in full. Apr. 20 30 Received payment in full from Willingham Company on the amount due May 25 Accepted Potter Inc.'s $18,000, 3-month, 7% note in settlement of a past-due balance Aug. 18 Received payment in full from Patwary Company on note due. on account. The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated Sold $12,500 of merchandise to Stanbrough Company and accepted a $12,500, 6- month, 10% note for the amount due. 25 Sept. 1

Answer 1

Journal entries
Date	Particulars			Debit	Credit
05-Jan	Accounts receivable			31800
	sale				31800
20-Jan	Notes receivable			31800
	accounts receivable				31800
18-Feb	notes receivable			21600
	sale revenue				21600
20-Apr	cash			32436
	notes receivable				31800
	interest income (31800*8%*3/12)				636
30-Apr	cash			38316
	notes receivable				37200
	interest income (37200*9%*4/12)				1116
25-May	notes receivable			18000
	accounts receivable				18000
18-Aug	cash			22572
	notes receivable				21600
	interest income (21600*9%*6/12)				972
25-Aug	accounts receivable			18315
	notes receivable				18000
	interest income (18000*7%*3/12)				315
01-Sep	Notes receivable			12500
	sales				12500