Reference no: EM132854230

Question - Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following:

Jan. 2 Sold $24,600 of merchandise to Sapounas Company, terms n/30. The cost of the goods sold was $14,760. Schneider uses the perpetual inventory system.

Feb. 1 Accepted a $24,600, five-month, 5% promissory note from Sapounas Company for the balance due. (See January 2 transaction.) Interest is payable at maturity.

Feb. 15 Sold $13,200 of merchandise costing $7,920 to Garrison Company and accepted Garrison's three-month, 5% note in payment. Interest is payable at maturity.

Mar. 15 Sold $10,600 of merchandise to Hoffman Co., terms n/30. The cost of the merchandise sold was $6,360.

April 15 Collected the amount owing from Hoffman Co. in full.

May 15 Collected the Garrison note in full. (See February 15 transaction.)

May 31 Accrued interest at year end.

July 1 Sapounas Company dishonoured its note of February 1. The company is bankrupt and there is no hope of future settlement.

July 13 Sold $7,200 merchandise costing $4,320 to Weber Enterprises and accepted Weber's $7,200, three-month, 7% note for the amount due, with interest payable at maturity.

Oct. 13 The Weber Enterprises note was dishonoured. (See July 13 transaction.) It is expected that Weber will eventually pay the amount owed.

Required - Record the above transactions. Assume Schneider Company has no stated return policy.