Define the following terms in relation to accounts receivables$($i$)$ Promissory note$($ii$)$ Notes receivable$($iii$)$ Factor$($b$)$ Presented below are data on three promissory notes.Date of Maturity Annual Total Note Terms Date Principal Interest Rate Interest$($i$)$ April $160$ days $?$ $$600,0006\%?($ii$)$ July $230$ days $?90,000?$ $$600($iii$)$ March $76$ months $?120,00010\%?$Determine the missing amounts.$($c$)$ Gonzalez Company has been in business several years. At the end of the current year, the ledger shows the following: Accounts Receivable K $310,000$ Dr$.$Sales Revenue $2,200,000$ Cr$.$Allowance for Doubtful Accounts $6,100$ Cr$.$Bad debts are estimated to be $5\%$ of accounts receivable. Prepare the entry to adjust Allowance for Doubtful Accounts.$($d$)$ Kerwick Company had accounts receivable of K$100,000$ on January$1,2017.$ The only transactions that affected accounts receivable during$2017$ were net credit sales of K$1,000,000,$ cash collections of K$920,000,$and accounts written off of K$30,000.$Instructions$($i$)$ Compute the ending balance of accounts receivable.$($ii$)$ Compute the accounts receivable turnover for $2017.($iii$)$ Compute the average collection period in days.$($e$)$ Presented below are selected transactions of Molina Company. Molina sells in large quantities to other companies and also sells itsproduct in a small retail outlet.March $1$ Sold merchandise on account to Dodson Company for $$5,000,$terms $2/10,$ n$/30\mathrm{.}3$ Dodson Company returned merchandise worth $$500$ to Molina$\mathrm{.}9$ Molina collected the amount due from Dodson Company from theMarch $1$ sale$\mathrm{.}15$ Molina sold merchandise for $$400$ in its retail outlet. The customer used his Molina credit card$\mathrm{.}31$ Molina added $1\mathrm{.}5\%$ monthly interest to the customers credit card balance. Instructions Prepare journal entries for the transactions above.

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i Promissory note A promissory note is a written promise by a borrower to repay a specific amount of ... View the full answer