The Following Series of Transactions Occurred During Year 1 and Year

question 55

Essay

The following series of transactions occurred during Year 1 and Year 2,when Foxworth Co.sold merchandise to Kevin Lewis.Foxworth's annual accounting period ends on December 31.
10/01/Yr 1 Sold $12,000 of merchandise to K.Lewis,terms n/30.
11/15/Yr 1 Lewis reports that he cannot pay the account until early next year.He agrees to exchange the account for a 120-day,12% note receivable.
12/31/Yr 1 Prepared the adjusting journal entry to record accrued interest on the note.
03/15/Yr 2 Foxworth receives a check from Lewis for the maturity value (with interest)of the note.
03/22/Yr 2 Foxworth receives notification that Lewis' check is being returned for nonsufficient funds (NSF).
12/31/Yr 2 Foxworth writes off Lewis' account as uncollectible.
Prepare Foxworth Co.'s journal entries to record the above transactions.The company uses the allowance method to account for its bad debt expense.

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Definitions:

Permanent Injunction

A court order that permanently requires an individual or entity to either cease a specific activity or perform a specific act indefinitely into the future.

Certiorari

A court order overturning a decision and making it null and void.

Copyright Infringement

The unauthorized use of copyrighted material without permission from the copyright holder, in violation of copyright laws.

Original Idea

A novel concept or thought that has not been previously expressed or seen, often important in creative and intellectual property contexts.