Manatee Company closes its books monthly. On September 30, selected ledger account balances are:
| Notes Receivable |
|
$82,800 |
| Interest Receivable |
|
420 |
Notes Receivable include the following.
| Date |
|
Maker |
|
Face |
|
Term |
|
Interest |
| Aug. 16 |
|
M. Bear Inc. |
|
$ 16,800 |
|
60 days |
|
12% |
| Aug. 25 |
|
Pope Co. |
|
12,000 |
|
60 days |
|
14% |
| Sept. 30 |
|
Quackers Corp. |
|
54,000 |
|
6 months |
|
13% |
Interest is computed using a 360-day year. During October, the following transactions were completed.
| Oct. 7 |
|
Made sales of $7,630 on Manatee credit cards. |
| 12 |
|
Made sales of $700 on MasterCard credit cards. The credit card service charge is 2%. |
| 15 |
|
Added $531 to Manatee customer balance for finance charges on unpaid balances. |
| 15 |
|
Received payment in full from M. Bear Inc. on the amount due. |
| 24 |
|
Received notice that the Pope note has been dishonored. (Assume that Pope is expected to pay in the future.) |
|
|
|
 |