The following selected transactions are from Ohlm Company: (Do not round intermediate calculations and round your final answers to nearest whole number. Use 360 days a year.)
Dec 16 - Accepted a $10,400 60-day, 7% note dated this day in granting Danny Todd a time extension on his past due account receivable
Dec 31 - Made an adjusting entry to record the accrued interest on the Todd note
Feb 14 - Received Todd's payment of principal and interest on the note dated December 16
Mar 2 - Accepted a(n) $6.600, 7%, 90-day note dated this day in granting a time extension on the past due account receivable from Midnight Co
Mar 17 - Accepted a(n) $3,800, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past due account receivable
Apr 16 - Privet dishonored her note when presented for payment
May 31 - Midnight Co. refuses to pay the note that was due to OhIm Co. on May 31. Prepare the journal entry to charge note plus accrued interest to Midnight Co.'s accounts receivable
July 16 - payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity
Aug 7 - a(n) 500, 90-day, 9% note dated this day in granting a time extension on the past- due account receivable of Mulan Co.
Sept 3 - Accepted a(n) $3,590, 60 day, 9% note dated this day in granting Noah Carson a time extension
Nov 2 - on his past of principal plus interest from Carson for the September 3 note payment
Nov 5 - Received payment of principal plus interest from M for the August 7 note
Dec 1 - Wrote off Privet account against Allowance for Doubtful Accounts
Required: Use the calculated value to prepare journal entries for the 2014 transactions above.
Journal entries are the beginning of the bookkeeping process in accounting, it helps in recording the transactions in easy format for fast verification and transfer of values to respective accounts.
Answer and Explanation: 1
|Dec16||7% Note Receivables A/C||10400|
|To Account receivables||10400|
|(To record issuance of note receivables)|
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fromChapter 3 / Lesson 20
Learn what accounts receivables (AR) are and understand their purpose in business. Explore different examples of AR and what the journal entry for it is.