Exercise 8-7 Your answer is partially correct. Try again. Clinton Supply Corp. has the following selected transactions for notes receivable. Nov. 1 Lent $116,000 cash to A. Bouchard on a one-year, 9% note. Dec. 1 Sold goods to Wright, Inc., receiving a two-month, 6%, $23,100 note. The goods cost $12,600. 15 Received a six-month, 6%, $23,500 note in exchange for an account from Aquilina Corporation. Feb. 1 Collected the amount owing on the Wright note. 28 Accrued interest on all notes receivable at year end. Interest is calculated to the nearest half month and is due at maturity. 28 Analyzed each note and estimated that uncollectible notes at year end totalled $18,000. Record the above transactions for Clinton Supply Corp. (Credit account titles are automatically indented when amount is entered Date Account Titles and Explanation Debit Credit Nov. 1 Notes Receivable 116000 Cash 116000 Dec. 1 v Notes Receivable 23100 Sales 23100 (To record sales) Cost of Goods Sold 12600 M Inventory 12600 (To record cost of merchandise sold) Dec. 15 Notes Receivable 23500 Accounts Receivable 23500 Feb. 1 Cash 23331 Notes Receivable 23100 Interest Revenue 231 Feb. 28 | Interest Receivable 3774 Interest Revenue 3774 (To accrue interest) X Allowance for Doubtful Accounts 18000 Notes Receivable 18000 (To record estimate of uncollectible accounts) List of Accounts Exercise 8-7 Accounts Payable Accounts Receivable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Advances to Employees Allowance for Doubtful Accounts Allowance for Doubtful Notes Bad Debts Expense Bank Charges Expense Bank Loan Payable Buildings Cash Common Shares Cost of Goods Sold Current Portion of Bank Loan Payable Depreciation Expense Equipment Held for Trading Investments Income Tax Expense Income Tax Payable Income Tax Receivable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land No Entry Notes Payable Notes Receivable Prepaid Insurance Prepaid Rent Retained Earnings Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns and Allowances Sales Tax Recoverable Supplies Unearned Revenue