Gehrig Co. closes its books monthly. On June 30, selected ledger account balances are:

Notes Receivable $60,000 Interest Receivable 435 Notes Receivable include the following.

Date Maker Face Term Interest May 16 Fulton Inc. $12,000 60 days 9%

May 25 Ascot Co. 30,000 60 days 10%

June 30 Trayer Corp. 18,000 6 months 12%

During July, the following transactions were completed.

July 5 Made sales of $7,200 on Gehrig Co. credit cards.

14 Made sales of $1,300 on Visa credit cards. The credit card service charge is 3%.

14 Added $510 to Gehrig Co. credit card customer balances for finance charges on unpaid balances.

15 Received payment in full from Fulton Inc. on the amount due.

24 Received notice that the Ascot Co. note has been dishonored. (Assume that Ascot 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.)

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(b) Enter the balances at July 1 in the receivable accounts. Post the entries to all of the receivable accounts.

(c) Show the balance sheet presentation of the receivable accounts at July 31.