Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 7, Problem 10E
Summary Introduction
Introduction:
The account receivables which are no longer collectible as the customer can’t fulfill the obligation of paying it are known as
To prepare: The general journal entries for the following transaction.
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December 13 Accepted a $16,000, 45-day, 6% note in granting Miranda Lee a time extension on her past-due
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Exercise 7-18 (Algo) Notes recelvable transactions LO C2
Complete the table to calculate the interest amounts at December 31St and use the calculated value to prepare your journal entr
(Do not round your intermediate calculations. Use 360 days a year.)
Complete this question by entering your answers in the tabs below.
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Entries for Notes Receivable, Including Year-End Entries
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
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2017
- Dec. 7.
Dec. 31.
Dec. 31.
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Feb. 5.
Dec. 31
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Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank.
Assume February has 28 days in 2018
If required, round the interest to the nearest cent.
2017, Dec. 7 Notes Receivable
Dec. 31
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Received from Unitarian Clothing and Bags Co., on account, a $84,000, 60-day, 9% note dated December 7.
Recorded an adjusting entry for accrued interest on the note of December 7.
Recorded the closing entry for interest revenue.
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Show Me How
Received payment of note and interest from Unitarian Clothing & Bags Co.
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Accounts Receivable-Unitarian Clothing and Bags Co.
Interest…
Question Content Area On October 1, Black Company receives a 4% interest-bearing note from Reese Company to
settle a $17,400 account receivable. The note is due in six months. At December 31, Black should record interest
revenue of a. $174 b. $181 c. $171 d. $184
Chapter 7 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 1QSCh. 7 - Solstice Company determines on October 1 that it...Ch. 7 - Solstice Company determines on October 1 that it...Ch. 7 - The following list describes aspects of either the...Ch. 7 - Gomez Corp. uses the allowance method to account...Ch. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Accounts receivable subsidiary ledger; schedule of...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Percent of accounts receivable method P2 At each...Ch. 7 - Aging of receivables method P2 Daley Company...Ch. 7 - Percent of receivables method P2 Refer to the...Ch. 7 - Writing off receivables P2 Refer to the...Ch. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Notes receivable transactions P3 Refer to the...Ch. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Sales on account and credit card sales C1 Mayfair...Ch. 7 - Estimating and reporting bad debts P2 At December...Ch. 7 - Aging accounts receivable and accounting for bad...Ch. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Santana Rey, owner of Business Solutions, realizes...Ch. 7 - Comparative figures for Apple and Google follow....Ch. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - As the accountant for Pure-Air Distributing, you...Ch. 7 - Access eBays February 6, 2015, filing of its 10-K...Ch. 7 - Prob. 7BTNCh. 7 - Prob. 9BTN
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- Entries for Notes Receivable Autumn Designs & Decorators issued a 120-day, 6% note for $30,000, dated April 13 to Zebra Furniture Company on account. Assume a 360- day year when calculating interest. a. Determine the due date of the note. b. Determine the maturity value of the note. c1. Journalize the entry to record the receipt of the note by Zebra Furniture. If an amount box does not require an entry, leave it blank. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.arrow_forwardEntries for Notes Receivable Autumn Designs & Decorators issued a 120-day, 8% note for $78,000, dated April 13 to Zebra Furniture Company on account. Assume a 360-day year when calculating interest. a. Determine the due date of the note. b. Determine the maturity value of the note. c1. Journalize the entry to record the receipt of the note by Zebra Furniture. If an amount box does not require an entry, leave it blank. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.arrow_forwardArvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.arrow_forward
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