Hilo Company closes its books monthly. On September 30, selected ledger account balances are:

Notes Receivable $31,000 Interest Receivable 170 Notes Receivable include the following.

Date Maker Face Term Interest Aug. 16 Demaster Inc. $ 8,000 60 days 8%

Aug. 25 Skinner Co. 9,000 60 days 10%

Sept. 30 Almer Corp. 14,000 6 months 9%

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

Oct. 7 Made sales of $6,300 on Hilo credit cards.

12 Made sales of $1,200 on MasterCard credit cards. The credit card service charge is 3%.

15 Added $460 to Hilo customer balance for finance charges on unpaid balances.

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

24 Received notice that the Skinner note has been dishonored. (Assume that Skinner is expected to pay in the future.)

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. Post the entries to all of the receivable accounts.

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