P9-7B On January 1, 2008, Frybendall Company had Accounts Receivable $56,900 and

Price: $3.99
  

P9-7B On January 1, 2008, Frybendall Company had Accounts Receivable $56,900 and

Allowance for Doubtful Accounts $4,700. Frybendall Company prepares financial statements

annually. During the year the following selected transactions occurred.

Jan. 5 Sold $6,300 of merchandise to Klosterman Company, terms n/30.

Feb. 2 Accepted a $6,300, 4-month, 10% promissory note from Klosterman Company for the

balance due.

12 Sold $7,800 of merchandise to Menard Company and accepted Menard’s $7,800,

2-month, 10% note for the balance due.

26 Sold $4,000 of merchandise to Louk Co., terms n/10.

Apr. 5 Accepted a $4,000, 3-month, 8% note from Louk Co. for the balance due.

12 Collected Menard Company note in full.

June 2 Collected Klosterman Company note in full.

July 5 Louk Co. dishonors its note of April 5. It is expected that Louk will eventually pay the

amount owed.

15 Sold $7,000 of merchandise to Peck Co. and accepted Peck’s $7,000, 3-month, 12%

note for the amount due.

Oct. 15 Peck Co.’s note was dishonored. Peck Co. is bankrupt, and there is no hope of future

settlement.

Instructions

Journalize the transactions