Entries for Notes Receivable

Autumn Designs & Decorators issued a 120-day, 12% note for $60,000, dated April 13 to Zebra Furniture Company on account. Assume a 360-day year when calculating interest.

a. Determine the due date of the note.

b. Determine the maturity value of the note. $fill in the blank 6cf527fe4012f92_2

c1. Journalize the entry to record the receipt of the note by Zebra Furniture. If an amount box does not require an entry, leave it blank.

		fill in the blank 764a29fcb078fd3_2	fill in the blank 764a29fcb078fd3_3
		fill in the blank 764a29fcb078fd3_5	fill in the blank 764a29fcb078fd3_6

c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.

		fill in the blank a4c852fe600efb7_2	fill in the blank a4c852fe600efb7_3
		fill in the blank a4c852fe600efb7_5	fill in the blank a4c852fe600efb7_6
		fill in the blank a4c852fe600efb7_8	fill in the blank a4c852fe600efb7_9

Accounts Receivable Turnover and Days' Sales in Receivables

Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The companys products include such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years:

	For the Period Ending
	Year 2		Year 1
Sales	$5,419,155		$5,352,360
Accounts receivable	529,250		543,850

Assume that accounts receivable were $485,450 at the beginning of Year 1.

a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places.

Year 2:	fill in the blank 1
Year 1:	fill in the blank 2

b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations.

Year 2:	fill in the blank 3 days
Year 1:	fill in the blank 4 days