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https://newconnect mheducation.com/flow/connect.htm r 9 Homework Saved Following

ID: 2553197 • Letter: H

Question

https://newconnect mheducation.com/flow/connect.htm r 9 Homework Saved Following are selected transactions for Ridge Company. Mar. 21 Accepted a $5,000, 180-day, 11% note dated March 21 from Tamara Jackson ?n granting a time extension on her past-due account receivable Sept. 17 Jackson dishonored her note when it is presented for payment. Dec. 31 After exhausting all legal means of collection, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. (Round your final answers to nearest whole dollar. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at September 17

Explanation / Answer

Answer:

1

Principal

5000

rate

11%

Time

180/365

Total interest

275

Interest

=5000x180/360 x11%

=$275

___________________________

2

Date

General Journal

Debit $

Credit $

Mar.21

Notes receivable-Tamara Jackson

5000

Account receivable-Tamara Jackson

5000

Sep.17

Account receivable-Tamara Jackson

5275

Interest revenue-

275

Notes receivable-Tamara Jackson

5000

Dec.31

Allowance for doubtful account

5275

Account receivable-Tamara Jackson

5275

Principal

5000

rate

11%

Time

180/365

Total interest

275