Prepare Jenna Corp $\$ 42,000$ Of Merchandise (Cost $\$ 35,000$ ) to Rachel Lee, Terms 1/15

Essay

Prepare Jenna Corp.'s journal entries to record the above transactions.
The following series of transactions occurred during 2020 and 2021 when Jenna Corp. sold merchandise to Rachel Lee. Jenna Corp's annual accounting period ends on December 31. Assume 28 days in the month of February.
1-Oct-20 Sold $\$ 42,000$ of merchandise (cost $\$ 35,000$ ) to Rachel Lee, terms 1/15, $\mathrm { n } / 45$ .
15-Nov-20 Rachel indicated she won't be able to pay the account until early next year. She agrees to change the account to a 120 day, $10 \%$ note receivable.
31-Dec-20 Prepared the adjusting entry to record accrued interest.
16-Mar-21 Jenna receives a cheque from Rachel Lee for the maturity value of the note.
22-Mar-21 Jenna receives notification that Rachel Lee'scheque is being returned for non-sufficient funds.
31-Dec-21 Jenna decides to write off Rachel Lee's account as uncollectible. Jenna uses the allowance method of accounting for bad debts.