You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly in late December, 20Y7, and an accounting intern has been drafting the journal entries since January. You are examining the accounting records before finalizing the journal entries for the first quarter of 20Y8. The following journal shows some of the accounts receivable transactions that you are reviewing. JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1 Jan.
17 Sales 9,600.00
2 Bad Debt Expense 9,600.00
3 17 Bad Debt Expense 9,600.00
4 Accounts Receivable-
CJ’s Sports Corp. 9,600.00
5 21 Cash 10,700.00
6 Bad Debt Expense 2,200.00
7 Accounts Receivable-Four
Seasons Sportswear Co. 12,900.00
8 Feb.
15 Accounts Receivable-Healthy
Running Inc. 3,000.00
9 Bad Debt Expense 500.00
10 Sales 3,500.00
11 Mar.
4 Accounts Receivable-Four
Seasons Sportswear Co. 2,200.00
12 Bad Debt Expense 2,200.00
13 4 Cash 2,200.00
14 Bad Debt Expense 2,200.00
15 13 Cash 5,540.00
16 Accounts Receivable-
Barb’s Best Gear 5,540.00
17 31 Bad Debt Expense 20,970.00
18 Accounts Receivable-
Healthy Running Inc. 5,150.00
19 Accounts Receivable-
The Locker Room 4,100.00
20 Accounts Receivable-
CJ’s Sports Corp. 2,780.00
21 Accounts Receivable-
Get Your Gear Inc. 7,050.00
22 Accounts Receivable-
Ready-2-Go 1,890.00
CHART OF ACCOUNTS
Fan-Tastic Sports Gear Inc.
General Ledger
ASSETS
110Cash
111Petty Cash
121Accounts Receivable-Healthy Running Inc.
122Accounts Receivable-The Locker Room
123Accounts Receivable-CJ’s Sports Corp.
124Accounts Receivable-Get Your Gear Inc.
125Accounts Receivable-Four Seasons Sportswear Co.
126Accounts Receivable-Ready-2-Go
127Accounts Receivable-Barb’s Best Gear
132Notes Receivable-Fast Feet Co.
136Interest Receivable
141Inventory
145Office Supplies
151Prepaid Insurance
181Land
191Store Equipment
192Accumulated Depreciation-Store Equipment
193Office Equipment
194Accumulated Depreciation-Office Equipment
LIABILITIES
210Accounts Payable
211Salaries Payable
212Unearned Rent
213Customer Refunds Payable
215Notes Payable
EQUITY
310Common Stock
311Retained Earnings
312Dividends
313Income Summary
REVENUE
410Sales
610Rent Revenue
612Interest Revenue
EXPENSES
510Cost of Goods Sold
520Sales Salaries Expense
521Advertising Expense
522Depreciation Expense-Store Equipment
523Delivery Expense
529Miscellaneous Selling Expense
530Office Salaries Expense
531Rent Expense
532Depreciation Expense-Office Equipment
533Insurance Expense
534Office Supplies Expense
536Credit Card Expense
537Cash Short and Over
538Bad Debt Expense
539Misc. Administrative Expense
710Interest Expense
1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes.
2. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7.
3. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8.