Problem 9-1B

Sept. extension a time extensi on his past-due receivable. of Nov. 2, Cr. Interest Nov. 2 Received payment principal plus interest from Carson for the September 3 note evenue $35 Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note Dec. 1 rote off the Privet account against Allowance for Doubtful Accounts. Required 1. Prepare journal entries to record these transactions and events. (Round amounts to the nearest dollar) Analysis Component 2. What reporting is necessary when a business pledges receivables as security for a loan and the loan i still outstanding at the end of the period? Explain the reason for this requirement and the accounting principle being satisfied PROBLEM SET B Archer Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Commerce Bank or Aztec. Commerce Bank deducts a 3% service charge for sales on its credit card and immediately credits the bank account of Archer when credit card receipts are deposited. Archer Problem 9-1B deposits the Commerce Bank credit card receipts each business day. When customers use the Aztec card, Sales on account and Archer accumulates the receipts for several days and then submits them to Aztec for payment. Aztec deducts credit card sales a 2% service charge and usually pays within one week of being billed. Archer completed the following transactions in August (terms of all credit sales are 2/10. n/30: and a sales are recorded at the gross price) Aug. 4 sold $3,700 of merchandise (that had cost $2,000) on credit to McKenzie Carpenter. lo sold $5,200 of merchandise (that had cost $2,800) to customers who used their Comme Bank credit cards