Consider the following transactions for Rural Beginnings. 2013 Dec. 6 Received a $ 4,000, 90-day, 9% note

Question:

Consider the following transactions for Rural Beginnings.

2013

Dec. 6 Received a $ 4,000, 90-day, 9% note in settlement of an overdue accounts receivable from AM Publishing.

31 Made an adjusting entry to accrue interest on the AM Publishing note.

31 Made a closing entry for interest revenue.

2014

Mar. 6 Collected the maturity value of the AM Publishing note.

Jun. 30 Loaned $ 15,000 cash to Jonathon’s Publishing, receiving a six-month, 8% note.

Oct. 2 Received a $ 2,000, 60-day, 8% note for a sale to Ying Yang Music. Ignore cost of goods sold.

Dec. 1 Ying Yang Music dishonored its note at maturity.

1 Wrote off the receivable associated with Ying Yang Music. (Use the allowance method.)

30 Collected the maturity value of the Jonathan’s Publishing note.

Journalize all transactions for Rural Beginnings. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.)

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...