Selica Company closes its books on October 31. On September 30, the Notes Receivable account balance is \(\$ 23,400\). Notes Receivable include the following:

Interest is computed using a 360-day year. During October, the following transactions were completed.
Oct. 7 Made sales of \(\$ 6,900\) on Selica credit cards.
12 Made sales of \(\$ 750\) on VISA credit cards. The credit card service charge is \(4 \%\).
15 Added \(\$ 485\) to Selica charge customer balances for finance charges on unpaid balances.
15 Received payment in full from Foran Inc. on the amount due.
25 Received notice that Drexler note has been dishonored. (Assume that Drexler is expected to pay in future.)
\section*{Instructions}

(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable.

(b) Enter the balances at October 1 in the receivable accounts and post the entries to all of the receivable accounts.

(c) Show the balance sheet presentation of the receivable accounts at October 31.

Transcribed Image Text:

Date Maker Face Term Interest Aug. 16 Foran Inc. $ 8,000 60 days 12% Aug. 25 Drexler Co. 5,200 2 months 12% Sept. 30 MGH Corp. 10,200 6 months 9%