Record the transactions on October 31 and the October 31 adjusting entry to accrue interest revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles Oct. 31 Oct. (To record dishonoured note where collection is expected.) Debit
Record the transactions on October 31 and the October 31 adjusting entry to accrue interest revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles Oct. 31 Oct. (To record dishonoured note where collection is expected.) Debit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:Cullumber Company adjusts its accounting records monthly in order to prepare monthly financial
statements. On September 30, 2024, selected general ledger account balances are:
Notes receivable
Interest receivable
Issue Date
Notes receivable are as follows:
Aug. 1, 2024
Aug. 31, 2024
Sept. 30, 2024
$37,200
Oct.
31
31
223
Maker
K. Leroy Co.
Fournier Co..
Nesbitt Co.
Principal Interest Term
$12,000 8%
9%
8,400
16,800
7%
3 months.
2 months
18 months
Interest is payable on the first day of each month for notes with terms of one year or longer. Interest is
payable at maturity for notes with terms of less than one year. In October, the following transactions
occurred:
Received notice that the Fournier Co. note had been dishonoured. (Assume that Fournier is
expected to pay in the future.)
Collected the amount owing from K. Leroy Co.
Transcribed Image Text:Record the transactions on October 31 and the October 31 adjusting entry to accrue interest revenue.
(Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g.
5,275.)
Date Account Titles
Oct.
31
Oct.
31
Oct.
31
(To record dishonoured note where collection is
expected.)
(To record collection of note and interest.)
and 1
Debit
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