Homework : Notes & Interest Receivable

Alpha closesits books every 30 September. selected ledger account balances are:

Notes Receivable = $ 41,000

Interest Receivable = $ 170

Notes Receivable includes the following:

DateMakerFace ValueTermInterest

Aug. 16 Beta$25,000 60 days 12%

Aug. 27 Omega $ 7,000 60 days 7%

Sept. 30 Sigma$ 18,000 6 months 10%

*Interest is computed using a 360-day year. During October, the following transactions were completed.

Oct 9Made sales of $ 19,000 on credit sales.

Oct 12Made sales of $ 6,500 on VISA credit card. The credit cards service chargeis 2%.

Oct 14Added $680 to customer balance for finance charges on unpaid balance.

Oct 15Received full payment from Beta on the amount due. Oct 26Received notice that Omegas note has been dishonored (Assume that Omega isexpected to pay in the future).

Instruction:Journalize the October transactions and the October 31 adjusting entry for accrued interest receivables.