Answer:
Following are the generalized transactions, and only general entries are recorded
Explanation
1. On jan, 5 sold merchandise to Rian company for $4500
Accounts Receivable are debited by 4,500
Sales are credited by 4,500
2. Feb. 2 accepted a $4,500, 4-month, 10% promissory note from Rian Company for the balance due.
Notes Receivable are debited by 4,500
Accounts Receivable are credited by 4,500
3. 12 sold $10,000 of merchandise to Cato Company and accepted Cato's $10,000, 2-month, 9% note for the balance due.
Notes Receivable are debited by 10,000
Sales are credited by 10,000
4. 26 Sold $11,900 of merchandise to Malcolm Co., terms n/10.
Accounts Receivable are debited by 11,900
Sales are credited by 11,900
5. Apr. 5 accepted an $11,900, 3-month, 8% notes from Malcolm Co. for balance due.
Notes Receivable are debited by 11,900
Accounts Receivable are credited by 11,900
6. 12 collected Cato Company note in full.
Cash is debited by 10,150
Interest Income is credited by 150
Notes Receivable are credited by 10,000
7. June 2 collected Rian Company note in full.
Cash is debited by 4,650
Interest Income is credited by 150
Notes Receivable is credited by 4,500
8. 15 sold $2,000 of merchandise to Gerri Inc. and accepted a $2,000, 6-month, 11% notes for the amount due.
Notes Receivable is debited by 2,000
Sales are credited by 2,000
Note: Aforementioned entries are also shown in T-account format in the attached word file.
