139. Journalize the following transactions in the accounts of Simmons Company:
Mar.1Received a $60,000, 60-day, 6% note dated March 1 from Bynum Company on account.
Mar.18Received a $25,000, 60-day, 9% note dated March 18 from Solo Company on account.
Apr.30The note dated March 1 from Bynum Company is dishonored, and the customer’s account is charged for the note, including interest.
May17The note dated March 18 from Solo Company is dishonored, and the customer’s account is charged for the note, including interest.
July29Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Company on April 30.
Aug.23Wrote off against the allowance account the amount charged to Solo Company on May 17 for the dishonored note dated March 18.
140. Financial Statement data for the years ended December 31 for Parker Corporation is as follows:
2012 2011
Net Sales $2,595,600 $2,409,500
Accounts Receivable
Beginning of the year $ 390,000 $400,000
End of the year 434,000 390,000
a) Determine the accounts receivable turnover for 2012 and 2011.
b) Determine the number of days’ sales in receivables for 2012 and 2011.
c) Does the change in accounts receivable turnover and number of days’ sales in receivables from 2011 to 2012 indicate a favorable or unfavorable trend.?