Problem 9-6A (Part Level Submission)

Farwell Company closes its books monthly. On September 30, selected ledger account balances are:

Notes Receivable		$40,800
Interest Receivable		312

Notes Receivable include the following.

Date		Maker		Face		Term		Interest
Aug. 16		K. Goza Inc.		$ 12,000		60 days		12%
Aug. 25		Holt Co.		12,000		60 days		11%
Sept. 30		Noblitt Corp.		16,800		6 months		13%

Interest is computed using a 360-day year. During October, the following transactions were completed.

Oct. 7		Made sales of $7,100 on Farwell credit cards.
12		Made sales of $800 on MasterCard credit cards. The credit card service charge is 1%.
15		Added $460 to Farwell customer balances for finance charges on unpaid balances.
15		Received payment in full from K. Goza Inc. on the amount due.
24		Received notice that the Holt note has been dishonored. (Assume that Holt is expected to pay in the future.)

(a) 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 Debit Credit Oct. 12