ACC 1810-Principles of Financial Accounting n-class activity # 11-Notes Receivable Name Daur ncc Exercise 7-13 Honoring a note Prepare journal entries to record these selected transactions for Vitalo Company. Nov. 1 Accepted a $6,000, 180-day, 8 % note dated November 1 from Kelly White in granting a time extension on her past-due account receivable. Adjusted the vear-end accounts for the accrued interest earned on the White note. White honored her note when presented for payment; February has 28 days for the current year. Dec. 31 s00 Apr. 30 Post. Ref. Date Accounts and Explanations Debit Credit ,50 Exercise 7-14 Dishonoring a note Prepare journal entries to record the following selected transactions of Ridge Company Accepted a $9,50o, 180-day, 8 % note dated March 21 from Tamara Jackson in granting a time extension on her past-due account receivable. Jackson dishonored her note when presented for payment. After exhausting all legal means of collection, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts. Mar. 21 Sep. 17 Dec. 31 Post. Date Accounts and Explanations Ref. Debit Credit Exercise 7-15 Selling and pledging accounts receivable - On June 30, Petrov Co. has $128,700 of accounts receivable. Prepare journal entries to record the following selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.) Sold $7,245 of merchandise (that had cost $5,o00) to customers on credit, terms n/30. Sold $20,000 of accounts receivable to Main Bank. Main charges a 4 % factoring fee. Received $5,859 cash from customers in payment on their accounts. Borrowed $10,000 cash from Main Bank, pledging $12,500 of accounts receivable as security for the loan. July 4 17 27 Post Credit na Debit Ref. Accounts and Explanations Date ACC 1810-Principles of Financial Accounting n-class activity # 11-Notes Receivable Name Daur ncc Exercise 7-13 Honoring a note Prepare journal entries to record these selected transactions for Vitalo Company. Nov. 1 Accepted a $6,000, 180-day, 8 % note dated November 1 from Kelly White in granting a time extension on her past-due account receivable. Adjusted the vear-end accounts for the accrued interest earned on the White note. White honored her note when presented for payment; February has 28 days for the current year. Dec. 31 s00 Apr. 30 Post. Ref. Date Accounts and Explanations Debit Credit ,50 Exercise 7-14 Dishonoring a note Prepare journal entries to record the following selected transactions of Ridge Company Accepted a $9,50o, 180-day, 8 % note dated March 21 from Tamara Jackson in granting a time extension on her past-due account receivable. Jackson dishonored her note when presented for payment. After exhausting all legal means of collection, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts. Mar. 21 Sep. 17 Dec. 31 Post. Date Accounts and Explanations Ref. Debit Credit Exercise 7-15 Selling and pledging accounts receivable - On June 30, Petrov Co. has $128,700 of accounts receivable. Prepare journal entries to record the following selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.) Sold $7,245 of merchandise (that had cost $5,o00) to customers on credit, terms n/30. Sold $20,000 of accounts receivable to Main Bank. Main charges a 4 % factoring fee. Received $5,859 cash from customers in payment on their accounts. Borrowed $10,000 cash from Main Bank, pledging $12,500 of accounts receivable as security for the loan. July 4 17 27 Post Credit na Debit Ref. Accounts and Explanations Date
