Prepare the journal entries for the following transactions for Dobson Industries Company.
a) Dobson sold $8,000 of merchandise to Bolt Imports Company on account. The company uses the periodic inventory method.
b) Dobson accepted a 90-day, 7% note from Bolt in settlement of its account.
c) Bolt defaulted on its note on the maturity date.
d) Collected the previously defaulted Bolt note plus $25 additional interest.

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The Answer of Prepare the journal entries for the following transactions for Dobson Industries Company.
a) Dobson sold $8,000 of merchandise to Bolt Imports Company on account. The company uses the periodic inventory method.
b) Dobson accepted a 90-day, 7% note from Bolt in settlement of its account.
c) Bolt defaulted on its note on the maturity date.
d) Collected the previously defaulted Bolt note plus $25 additional interest.

Prepare the Journal Entries for the Following Transactions for Dobson