just need the red boxes Blossom Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does notmake entries to accrue interest except at December 31.Nov.Dec.Loaned $58,800 cash to C. Bohr on a 12-month, 8% note.Sold goods to K. R. Pine, Inc., receiving a $7,200, 90-day, 8% note.16Received a $14,400, 180-day, 6% note to settle an open account from A. Murdock.31 Accrued interest revenue on all notes receivable.111Journalize the transactions for Blossom Co. (Omit cost of goods sold entries) (Credit account titles are automatically indented whenamount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Use 360 days for calculation)Account Titles and ExplanationNotes ReceivableDateNov. 1Debit58800Credit58000 Journalize the transactions for Blossom Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented whenamount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Use 360 days for calculation)DateNov. 1Dec. 11Dec. 16Dec. 31Account Titles and ExplanationNotes ReceivableCashNotes ReceivableSales RevenueNotes ReceivableAccounts ReceivableInterest ReceivableInterest RevenueDebit588007200144001008Credit588007200111144001008

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Blossom Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $58,800 cash to C. Bohr on a 12-month, 8% note. Sold goods to K. R. Pine, Inc., receiving a $7,200, 90-day, 8% note. Received a $14,400, 180-day, 6% note to settle an open account from A Murdock Accrued interest revenue on all notes receivable. om Co. (Omit cost of goods sold entries) (Credit account titles are outomatically indented when

Blossom Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $58,800 cash to C. Bohr on a 12-month, 8% note. Sold goods to K. R. Pine, Inc., receiving a $7,200, 90-day, 8% note. Received a $14,400, 180-day, 6% note to settle an open account from A Murdock Accrued interest revenue on all notes receivable. om Co. (Omit cost of goods sold entries) (Credit account titles are outomatically indented when

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
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Notes Receivable Transactions The following notes receivable transactions occurred for Harris Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Required: 1. Prepare the journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Harris does not normally sell its notes and uses a 360-day year for the purpose of computing interest. Round all calculations to the nearest penny.) 2. Show how Harris notes receivable would be disclosed on the December 31 balance sheet. (Assume these are the only note transactions encountered by Harris during the year.)
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