Kolzow Company closes its books on July 31. On June 30 the Interest Receivable balance is $132.80, and the Notes Receivable account balance is $20,800. Notes Receivable include the following:

During July the following transactions were completed:
July 5 Made sales of $6,200 on Kolzow credit cards.
14 Made sales of $700 on VISA credit cards. The credit card service charge is 3%. ; 20 Received payment in full from Alder Inc. on the amount due.
25 Received notice that Dorn Co. note has been dishonored. (Assume that Dorn Co. is expected to pay in the future.)
Instructions

(a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days.)

(b) Enter the balances at July 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 July 31.

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Date Maker Face Value Term Interest Rate May 21 Alder Inc. $ 6,000 60 days 12% May 25 Dorn Co. 4,800 60 days 11% June 30 MJH Corp. 10,000 6 months 9%