Haley Company closes its books on October 31. On September 30 the Notes Receivable account balance is $24,700. Notes Receivable include the following.

Date Maker Face Value Term Maturity Date Interest Rate Aug. 16 Vinje Inc. $ 8,500 60 days Oct. 15 9%

Aug. 25 Rath Co. 6,000 2 months Och 25 7%

Sept. 30 Flagg Corp. 10,200 6 months Mar. 30 8%

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

Oct. 7 Made sales of $5,600 on Haley credit cards. 12. Made sales of $600 on Visa credit cards. The credit card service charge is 3%. 15. Received payment in full from Vinje Inc. on the amount due.

25 Received payment in full from Rath 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 October 31.