Jan. 3 Loaned $21,600 cash to Trina Gelhaus, receiving a 90-day,7% note. Feb. 10 Sold merchandise on account to Bradford & Co.,$26,400. The cost of the goods sold was $15,840. 13 Soldmerchandise on account to Dry Creek Co., $63,600. The cost of goodssold was $57,240. Mar. 12 Accepted a 60-day, 8% note for $26,400from Bradford & Co. on account. 14 Accepted a 60-day, 9% notefor $63,600 from Dry Creek Co. on account. Apr. 3 Received theinterest due from Trina Gelhaus and a new 120-day, 9% note as arenewal of the loan of January 3. (Record both the debit and thecredit to the notes receivable account.) May 11 Received fromBradford & Co. the amount due on the note of March 12. 13 DryCreek Co. dishonored its note dated March 14. July 12 Received fromDry Creek Co. the amount owed on the dishonored note, plus interestfor 60 days at 12% computed on the maturity value of the note. Aug.1 Received from Trina Gelhaus the amount due on her note of April3. Oct. 5 Sold merchandise on account, terms 2/10, n/30, toHalloran Co., $12,500. Record the sale net of the 2% discount. Thecost of the goods sold was $7,500. 15 Received from Halloran Co.the amount of the invoice of October 5, less 2% discount.
Jan. 3 Loaned $21,600 cash to Trina Gelhaus, receiving a 90-day,7% note. Feb. 10 Sold merchandise on account to Bradford & Co.,$26,400. The cost of the goods sold was $15,840. 13 Soldmerchandise on account to Dry Creek Co., $63,600. The cost of goodssold was $57,240. Mar. 12 Accepted a 60-day, 8% note for $26,400from Bradford & Co. on account. 14 Accepted a 60-day, 9% notefor $63,600 from Dry Creek Co. on account. Apr. 3 Received theinterest due from Trina Gelhaus and a new 120-day, 9% note as arenewal of the loan of January 3. (Record both the debit and thecredit to the notes receivable account.) May 11 Received fromBradford & Co. the amount due on the note of March 12. 13 DryCreek Co. dishonored its note dated March 14. July 12 Received fromDry Creek Co. the amount owed on the dishonored note, plus interestfor 60 days at 12% computed on the maturity value of the note. Aug.1 Received from Trina Gelhaus the amount due on her note of April3. Oct. 5 Sold merchandise on account, terms 2/10, n/30, toHalloran Co., $12,500. Record the sale net of the 2% discount. Thecost of the goods sold was $7,500. 15 Received from Halloran Co.the amount of the invoice of October 5, less 2% discount.