Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Durhan Company closes its books on its October 31 year-end. The company does not make entries to accrue for interest except at its year end.
Durhan Company closes its books on its October 31 year-end. The company does not make entries to accrue for interest except at its year end. On September 30, the Notes Receivable account balance is $22,800. Notes Receivable include the following. Interest is computed using a 360-day year. During October, the following transactions were completed. Oct. 7 Made sales of $4,600 on Durhan credit cards 12 Made sales of $600 on Visa credit cards. The credit card service charge is 3%. 15 Received payment in full from Stuhmer Inc. on the amount due. 25 Received payment in full from Moberg Co. on amount due. (a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days: omit cost of goods sold entries.) (b) Enter the balances at October 1 in the receivables accounts and post the entries to all of the receivables accounts. (Use T-accounts) (c) Show the balance sheet presentation of the receivable accounts at October 31, 2014
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started