1. The following were selected from among the transactions completed during the current year by Bonita Co., an appliance wholesale company:
Jan. 20. Sold merchandise on account to Wilding Co., $30,750. The cost of merchandise sold was $18,600.
Mar. 3. Accepted a 60-day, 8% note for $30,750 from Wilding Co. on account.
May 2. Received from Wilding Co. the amount due on the note of March 3.
June 10. Sold merchandise on account to Foyers for $13,600. The cost of merchandise sold was $8,200.
June 15. Loaned $18,000 cash to Michele Hobson, receiving a 30-day, 6% note.
20. Received from Foyers the amount due on the invoice of June 10, less 2% discount.
July 15. Received the interest due from Michele Hobson and a new 60-day, 9% note as a renewal of the loan of June
15. (Record both the debit and the credit to the notes receivable account.)
Sept.13. Received from Michele Hobson the amount due on her note of July 15.
13. Sold merchandise on account to Rainbow Co., $20,000. The cost of merchandise sold was $11,500.
Oct. 12. Accepted a 60-day, 6% note for $20,000 from Rainbow Co. on account.
Dec. 11. Rainbow Co. dishonored the note dated October 12.
26. Received from Rainbow Co. the amount owed on the dishonored note, plus interest for 15 days at 12% computed on the maturity value of the note.
Instructions
Journalize the transactions.