Exercise 8-7

1.		Nov. 1		Loaned $60,000 cash to B. Carr on a 12-month, 7% note.
2.		Dec. 11		Sold goods to R. P. Kiner, Inc., receiving a $3,600, 90-day, 8% note.
3.		Dec. 16		Received a $12,000, 180-day, 9% note to settle an open account from M. Adcock.
4.		Dec. 31		Accrued interest revenue on all notes receivable.

Malone Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31.

What are the answers in red?

Thnaks

No. Date Account Titles and Explanation Debit Credit 1, Nov. 1 ITNotes Receivable 60000 Cash 60000 2. Dec. 11 |Accounts Receivable 3600 Sales Revenue 3600 Dec 16 Notes Receivable 3, foec. 16 ITNotes Receivable 3600 Accounts Receivable 3600 4. Dec. 31 Interest Receivable 761 Interest Revenue 761