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how did you calulated the interest recv and interest revenue for Oct 31 Problem 9-6A Farwell Company closes its books monthly. On September 30, selected
how did you calulated the interest recv and interest revenue for Oct 31
Problem 9-6A Farwell Company closes its books monthly. On September 30, selected ledger account balances are: Notes Receivable Interest Receivable $36,000 243 Notes Receivable include the following. Date Aug. 16 Aug. 25 Sept. 30 Maker K. Goza Inc. Holt Co. Noblitt Corp. Face $ 10,800 12,000 13,200 Term 60 days 60 days 6 months Interest 10% 9% 11% Interest is computed using a 360-day year. During October, the following transactions were completed. Oct. 7 12 15 15 24 Made sales of $6,900 on Farwell credit cards. Made sales of $900 on MasterCard credit cards. The credit card service charge is 2%. Added $460 to Farwell customer balances for finance charges on unpaid balances. Received payment in full from K. Goza Inc. on the amount due. Received notice that the Holt note has been dishonored. (Assume that Holt is expected to pay in the future.) Your answer is correct. Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for calculation.) Date Account Titles and Explanation Accounts Rec Oct. 7 Debit 6900 Sales Revenu Oct. 12 Cash Service Charg Sales Revenu Credit 6900 882 18 900 Oct. 15 Accounts Rec 460 Interest Reven Oct. 15 Cash 460 10980 Notes Receiva 10800 Interest Receiv 135 Interest Reven Oct. 24 Accounts Rec 45 12180 Notes Receiva 12000 Interest Receiv 108 Interest Reven Oct. 31 Interest Receiv Interest Reven SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT 72 121 121 Your answer is correct. Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts. (Post entries in the order of journal entries presented in the previous part.) Notes Receivable Date Oct. 1 Explanatio Ref n . Balance Debit Credit Balance 36000 Oct. 15 10800 25200 Oct. 24 12000 13200 Accounts Receivable Date Explanatio Ref n . Debit Credit Balance Oct. 7 6900 6900 Oct. 15 460 7360 Oct. 24 12180 19540 Interest Receivable Date Oct. 1 Explanatio Ref n . Balance Debit Credit Balance 243 Oct. 15 135 108 Oct. 24 108 0 Oct. 31 SHOW LIST OF ACCOUNTS 121 121 LINK TO TEXT LINK TO TEXT Your answer is correct. Show the balance sheet presentation of the receivable accounts at October 31. (List Current Assets in order of liquidity.) FARWELL COMPANY Balance Sheet (Partial) October 31 Current Assets $ Notes Receiva 13200 Accounts Rec Interest Receiv 19540 121 $ Total Receivables 32861Step by Step Solution
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