Problem - Manatee Company closes its books monthly. On September 30, selected ledger account balances are:
|
Notes Receivable
|
$66,300
|
|
Interest Receivable
|
243
|
Notes Receivable include the following:
|
Date
|
Maker
|
Face
|
Term
|
Interest
|
|
Aug. 16
|
M. Bear Inc.
|
$ 16,800
|
60 days
|
8%
|
|
Aug. 25
|
Pope Co.
|
7,500
|
60 days
|
10%
|
|
Sept. 30
|
Quackers Corp.
|
42,000
|
6 months
|
9%
|
Interest is computed using a 360-day year. During October, the following transactions were completed.
Oct. 7 Made sales of $7,440 on Manatee credit cards.
Oct. 12 Made sales of $1,500 on MasterCard credit cards. The credit card service charge is 1%.
Oct. 15 Added $508 to Manatee customer balance for finance charges on unpaid balances.
Oct. 15 Received payment in full from M. Bear Inc. on the amount due.
Oct. 24 Received notice that the Pope note has been dishonored. (Assume that Pope is expected to pay in the future.)
Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable.