Question
Kingbird, Inc. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On
Kingbird, Inc. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $ 26,600. Notes Receivable include the following.
| Date | Maker | Face Value | Term | Maturity Date | Interest Rate | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| April 21 | Coote Inc. | $ 5,600 | 90 days | July 20 | 8% | |||||
| May 25 | Brady Co. | 9,000 | 60 days | July 24 | 10% | |||||
| June 30 | BMG Corp. | 12,000 | 6 months | December 31 | 8% |
During July, the following transactions were completed.
| July 5 | Made sales of $ 4,850 on Kingbird, Inc. credit cards. | |
| 14 | Made sales of $ 800 on Visa credit cards. The credit card service charge is 3%. | |
| 20 | Received payment in full from Coote Inc. on the amount due. | |
| 24 Received payment in full from Brady Co. on the amount due. Enter the balances at July 1 in the receivable accounts and post the entries to all of the receivable accounts. (Post entries in the order of journal entries posted in the previous part.)
|
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