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Show the balance sheet presentation of the receivable accounts at October 31Ente

ID: 2498600 • Letter: S

Question

Show the balance sheet presentation of the receivable accounts at October 31Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts

Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable.Farwell Company closes its books monthly. On September 30, selected ledger account balances are:


Notes Receivable include the following.

Date

Maker

Face

Term

Interest


Interest is computed using a 360-day year. During October, the following transactions were completed.

Received notice that the Holt note has been dishonored. (Assume that Holt is expected to pay in the future.)

Notes Receivable $36,000 Interest Receivable 243

Explanation / Answer

Journal Entries :

a) Oct. 7 - Accounts Receivable                                                                      $6900

                           To Sales                                                                                                  $6900

b) Oct. 12 - Cash                                                                                            $873

                 Service charges                                                                              $27

                           To Sales                                                                                                    $900

c) Oct. 15 - Interest Receivable                                                                        $460

                           To Interest Reversal                                                                                     $460

d) Oct. 15 - Cash                                                                                          $8106.67

                           To Notes Receivable                                                                                   $8000

                           To Interest Reversal                                                                                   $106.67

e) Oct. 24 - Accounts receivable - Holt co.                                                       $9150

                           To Notes Receivable                                                                                  $9000

                           To Interest Reversal                                                                                    $150

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