Exercise 7-14 Dishonoring a note LO P4

Following are selected transactions for Ridge Company.

Mar.		21		Accepted a $11,500, 180-day, 7% note dated March 21 from Tamara Jackson in granting a time extension on her past-due account receivable.
Sept.		17		Jackson dishonored her note when it is presented for payment.
Dec.		31		After exhausting all legal means of collection, Ridge Company wrote off Jacksons account against the Allowance for Doubtful Accounts.

Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. (Round your final answers to nearest whole dollar. Use 360 days a year.)

Complete the table to calculate the interest amounts at September 17.

Use the calculated value to prepare your journal entries.

• 1

  Accepted a $11,500, 180-day, 7% note dated March 21 from Tamara Jackson in granting a time extension on her past-due account receivable.

• 2

  Jackson dishonored her note when it is presented for payment.

• 3

  After exhausting all legal means of collection, Ridge Company wrote off Jacksons account against the Allowance for Doubtful Accounts.