The Bon Ton Company closes its books on July 31. On June 30, the Notes Receivable account balance is \(\$ 19,800\). Notes Receivable include the following:

During July, the following transactions were completed.
July 5 Made sales of \(\$ 6,200\) on Bon Ton credit cards.
14 Made sales of \(\$ 700\) on VISA credit cards. The credit card service charge is \(3 \%\).
16 Added \(\$ 415\) to Bon Ton charge customer balances for finance charges on unpaid balances.
20 Received payment in full from Alder Inc. on the amount due.
25 Received notice that Dorn note has been dishonored. (Assume that Dorn is expected to pay in the future.)
\section*{Instructions}

(a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days.)

(b) Enter the balances at July 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 July 31 .

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Date Maker Face Term Interest / May 21 May 25 Alder Inc. $6,000 60 days 12% Dorn Co. 4,800 60 days 11% -June 30 MJH Corp. 9,000 6 months 9%