Tamarisk Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, 2027, the Notes Receivable account balance is $24,600. Notes Receivable include the following. Date April 21 Maker Coote Inc. Face Value Term Maturity Date Interest Rate $6,800 90 days July 20 8% May 25 Brady Co. 7,800 60 days July 24 10% June 30 BMG Corp. 10,000 6 months December 31 6% During July, the following transactions were completed. July 5 Made sales of $4,300 on Tamarisk credit cards. 14 Made sales of $700 on Visa credit cards. The credit card service charge is 3%. 20 Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. Show the balance sheet presentation of the receivable accounts at July 31, 2027. Tamarisk Balance Sheet (Partial) $ $

Tamarisk Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, 2027, the Notes Receivable account balance is $24,600. Notes Receivable include the following. Date April 21 Maker Coote Inc. Face Value Term Maturity Date Interest Rate $6,800 90 days July 20 8% May 25 Brady Co. 7,800 60 days July 24 10% June 30 BMG Corp. 10,000 6 months December 31 6% During July, the following transactions were completed. July 5 Made sales of $4,300 on Tamarisk credit cards. 14 Made sales of $700 on Visa credit cards. The credit card service charge is 3%. 20 Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. Show the balance sheet presentation of the receivable accounts at July 31, 2027. Tamarisk Balance Sheet (Partial) $ $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 13P: Notes Receivable Transactions The following notes receivable transactions occurred for Harris...

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Notes Receivable On September 1, 2016, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Doughertys year-end is December 31. Rozelle paid the note and interest on the due date. Required Who is the maker and who is the payee of the note? What is the maturity date of the note? Prepare all necessary journal entries that Dougherty needs to make in connection with this note.
Receivables Issues Magrath Company has an operating cycle of less than one year and provides credit terms for all of its customers. On April 3, 2019, the company factored, without recourse, some of its accounts receivable. Magrath does not normally factor its receivables. On August 1, 2019, Magrath sold special order merchandise and received an interest-bearing note due April 30, 2020. Magrath uses the allowance method to account for uncollectible accounts. During 2019, some accounts were written off as uncollectible, and other accounts previously written off as uncollectible were collected. Required: 1. Explain how Magrath should account for and report the accounts receivable factored on April 3, 2019. Why is this accounting treatment appropriate? 2. Explain how Magrath should report the effects of the interest-bearing note on its income statement for the year ended December 31, 2019, and its December 31, 2019, balance sheet. 3. Explain how Magrath should account for the collection of the accounts previously written off as uncollectible. 4. What are the two basic approaches to estimating uncollectible accounts under the allowance method? What is the rationale for each approach?
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.
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Carla Vista Co. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,600. Notes Receivable include the following. Date Maker Face Value Term Maturity Date Interest Rate April 21 Coote Inc. $5,600 90 days July 20 8% May 25 Brady Co. 7,200 60 days July 24 10% June 30 BMG Corp. 10,800 6 months December 31 6% During July, the following transactions were completed. July 5 Made sales of $4,110 on Carla Vista Co. credit cards. 14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%. 20 Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of…
Ayayai Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year- end. On June 30, the Notes Receivable account balance is $23,800. Notes Receivable include the following. Date Maker Face Value Term Maturity Date Interest Rate April 21 Coote Inc. $4,800 90 days July 20 8% May 25 Brady Co. 7,800 60 days July 24 10% June 30 BMG Corp. 11,200 6 months December 31 6% During July, the following transactions vwere completed. July 5 Made sales of $5,100 on Ayayai credit cards. 14 Made sales of $500 on Visa credit cards. The credit card service charge is 3%. 20 Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. Date Account Titles and Explanation Debit Credit y5 Accounts Receivable 5100 Sales Revenue 5100 uly 14 V Cash 485 Service Charge Expense 15 Sales Revenue 500 y 20 V Cash 4896 Interest Revenue 96 Notes Receivable 4800 v 24 v Cash 7930 Interest Revenue…
Metlock Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 (a) 16 31 Loaned $18,500 cash to Manny Lopez on a 12 month, 12% note. Sold goods to Ralph Kremer, Inc., receiving a $45,000, 90-day, 10% note. Received a $47,600, 180 day, 12% note to settle an open account from Joe Fernetti. Accrued interest revenue on all notes receivable. Journalize the transactions for Metlock Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for calculation. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Nov. 1 Dec. 11 Dec. 16 Dec. 31 ETEXLUUUK and Media Account Titles and Explanation Debit Credit
Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note. Received a $4,000, 180 day, 9% note to settle an open account from Joe Fernetti. Accrued interest revenue on all notes receivable.
Sheridan Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $21,600 cash to Manny Lopez on a 12 month, 10% note. Sold goods to Ralph Kremer, Inc., receiving a $54,000, 90-day, 8% note. Received a $53,280, 180 day, 10% note to settle an open account from Joe Fernetti. Accrued interest revenue on all notes receivable.
On October 1, Ramos Co. signed a $90,000, 60-day note at the bank to be paid on November 30. (Assume a 360-day year is used for interest computations.) a. Journalize the entries for October 1 and November 30, assuming the note was discounted at 6%. If an amount box does not require an entry, leave it blank. Oct. 1 fill in the blank 9b46170d8ff6049_2 fill in the blank 9b46170d8ff6049_3 fill in the blank 9b46170d8ff6049_5 fill in the blank 9b46170d8ff6049_6 fill in the blank 9b46170d8ff6049_8 fill in the blank 9b46170d8ff6049_9 Nov. 30 fill in the blank 9b46170d8ff6049_11 fill in the blank 9b46170d8ff6049_12 fill in the blank 9b46170d8ff6049_14 fill in the blank 9b46170d8ff6049_15 b. Journalize the entries for October 1 and November 30, assuming the note was interest-bearing at 6%. If an amount box does not require an entry, leave it blank. Oct. 1 fill in the blank 213f6401ef9900d_2 fill in the blank 213f6401ef9900d_3 fill in…
Prepare entries for various credit card and notes receivable transactions. P8.6 (LO 1, 2, 3, 4) Anping Enterprises closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is NT$23,800 (amounts in thousands). Notes Receivable includes the following. Date April 21 Maker Coote Inc. Face Value Term Maturity Date Interest Rate NT$6,000 90 days July 20 8% May 25 Brady Co. June 30 ВМС Согр. 7,800 10,000 60 days July 24 10% 6 months December 31 6% b. A/R bal. NT$4,500 c. Tot. receivables NT$14,550 During July, the following transactions were completed. July 5 Made sales of NT$4,500 on Anping credit cards. 14 20 Made sales of NT$600 on Visa credit cards. The credit card service charge is 3%. Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. Instructions a. Journalize the July transactions and the July 31…
The following transactions have taken place for Accustart Corporation. The company has a December 31 fiscal year end and Accustart does not maintain a separate Allowance for Doubtful Notes Receivable account. 2024 May 1 Nov. 1 Nov. 30 Dec. 31 Dec. 31 2025 Jan. 31 Feb. 28 May 1 Received a $4,800, 1-year, 10% note in exchange for an outstanding account receivable from S. Dolan. Interest is due at the maturity of the note. Loaned $69,600 cash to B. Younger on a 4-month, 8% note. Interest is due at the end of each month. Received the interest due from B. Younger. Received the interest due from B. Younger. Accrued interest income on notes receivable. Received the interest due from B. Younger. Younger also repaid 70% of the principal Calance owing on the note at this time. Wrote off the balance of the B. Younger note as Younger has defaulted. Future payments are not expected. The interest due for the month of February was not collected. Received principal plus interest on the S. Dolan note.…