Brown Company closes its books on October 31. On September 30 the Notes Receivable account balance is

Question:

Brown Company closes its books on October 31. On September 30 the Notes Receivable account balance is $20,200. Notes Receivable include the following.

Interest is computed using a 360-day year. During October the following transactions were completed.
Oct. 7 Made sales of $4,600 on Brown credit cards.
12 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.
15 Received payment in full from Foran Inc. on the amount due.
25 Received payment in full from Marsh Co. on amount due.

Instructions
(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable.
(b) Enter the balances at October 1 in the receivable accounts and post the entries to all of the receivable accounts. (Use T accounts.)
(c) Show the balance sheet presentation of the receivable accounts at October31.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...