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Ditzler Company, a construction supply company, uses unting for uncollectible accounts receivable. Selected transactions comple the allowance method of accoun Ditzler Company are as follows: by Eeh. 1 Sold merchandise on account to Ames Co., $8,000. The cost of the mer- chandise sold was $4,500. Accepted a 60-day, 12% note for $8,000 from Ames Co. on account. 15, 9. Mar. Wrote off a $2500 account from Dorset Co. as uncollectible Loaned $7,500 cash to Jill Klein, receiving a 90-day, 14% note. Received the interest due from Ames Co. and a new 90-day, 14% note as a renewal of the loan. (Record both the debit and the credit to the notes receivable account.) Apr. 21. May 14, June 13. Reinstated the account of Dorset Co, written off on April 9, and received $2,500 in full payment. July 20. Jill Klein dishonored her note. Aug. 12. Received from Ames Co. the amount due on its note of May 14 Received from Jill Klein the amount owed on the dishonored note, plus interest for 30 days at 15%, computed on the maturity value of the note. Accepted a 60-day, 12% note for $12,000 from Global Company on a court. It is estimated that 3% of the credit sales of $1,375,000 for the year ended December 31 will be uncollectible. 19. Dec. 16. 31, Instructions 2. Journalize 1 Journalize the transactions. to record the accrued interest on December 31 on the adjusting entry the Global Company note.
Ditzler Company, a construction supply company, uses the allowance method of accounting for uncollectible accounts receivable. Selected transactions completed b Ditzler Company are as follows: Feb. 1 Sold merchandise on account to Ames Co., $8,000. The cost of the mer- chandise sold was $4,500. Accepted a 60-day, 12% note for $8,000 from Ames Co. on account. Wrote off a $2,500 account from Dorset Co. as uncollectible loaned $7,500 cash to Jill Klein, receiving a 90-day, 14% note. Received the interest due from Ames Co. and a new 90-day, 14% note as a renewal of the loan. (Record both the debit and the credit to the notes receivable account.) Reinstated the account of Dorset Co., written off on April 9, and received $2,500 in full payment. Mar. 15, Apr. 9. 21. May 14, June 13. July 20. Jill Klein dishonored her note Aug. 12. Received from Ames Co. the amount due on its note of May 14 Received from Jill Klein the amount owed on the dishonored note, plus interest for 30 days at 15%, computed on the maturity value of the note. Accepted a 60-day, 12% note for $12,000 from Global Company on account. It is estimated that 3% of the credit sales of $1,375,000 for the year ended December 31 will be uncollectible. 19. Dec. 16. 31, Instructions 1 Journalize the transactions. ualize the adjusting entry to record the accrued interest on December 31 on the Global Company note.
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