QS 9-8 Note receivable LO C2

On August 2, Jun Co. receives a $7,200, 90-day, 12% note from customer Ryan Albany as payment on his $7,200 account. 1. Compute the maturity date for the above note.

October 29

October 30

October 31

November 1

November 2

2. Prepare Juns journal entry for August 2.

Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Round your answers to nearest whole dollar value. Use 360 days a year.)

Daw Companys December 31 year-end unadjusted trial balance shows a $38,000 balance in Notes Receivable. This balance is from one 6% note dated December 1, with a period of 45 days. Assume Daw Company does not prepare reversing entries. Prepare journal entries for December 31 and for the notes maturity date assuming it is honored. (Use 360 days a year.) Record the year-end adjustment related to this note, if any.

Record the journal entry on the notes maturity date assuming it is honored. Assume Daw Company does not prepare reversing entries.

Record the sale by Balus Company of $133,000 in accounts receivable on May 1. Balus is charged a 4.00% factoring fee. Record the sale of receivable.

The following data are taken from the comparative balance sheets of Ruggers Company.

	2017		2016
Accounts receivable, net	$	153,600	$	138,700
Net sales		871,105		920,600

Complete the below table to calculate the accounts receivable turnover for the year 2017.

Exercise 9-11 Notes receivable transactions LO C2

Following are selected transactions of Danica Company for 2016.

Dec.		13		Accepted a $24,000, 45-day, 6% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
		31		Prepared an adjusting entry to record the accrued interest on the Lee note.

Complete the table to calculate the interest amounts at December 31^st.

		Interest
	Total Through	Recognized
	Maturity	December 31
Principal
Rate (%)
Time
Total interest

Record acceptance of a $24,000, 45-day, 6% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.

Prepare an adjusting entry to record the accrued interest on the Lee note.

Exercise 9-12 Notes receivable transactions LO P4

Following are selected transactions of Danica Company for 2016 and 2017. 2016

Dec.		13		Accepted a $10,000, 45-day, 6% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
		31		Prepared an adjusting entry to record the accrued interest on the Lee note.

2017

Jan.		27		Received Lee's payment for principal and interest on the note dated December 13.
Mar.		3		Accepted a $4,000, 8%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company.
		17		Accepted a $2,000, 30-day, 8% note dated March 17 in granting H. Cheng a time extension on his past-due account receivable.
Apr.		16		H. Cheng dishonored his note when presented for payment.
May		1		Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June		1		Received the Tomas payment for principal and interest on the note dated March 3.

Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.)

M Lee Note

Tomas Co Note

H Cheng Note

General Journal

Complete the table to calculate the interest amounts.

	Total Through Maturity	Amount Accrued at December 31	Interest Recognized January 27
Principal
Rate (%)
Time
Total interest

Exercise 9-13 Honoring a note LO P4

Following are selected transactions for Vitalo Company.

Nov.		1		Accepted a $14,000, 180-day, 7% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable.
Dec.		31		Adjusted the year-end accounts for the accrued interest earned on the White note.
Apr.		30		White honored her note when presented for payment; February has 28 days for the current year.

Complete the table to calculate the interest amounts at December 31^st and April 30^th and use those calculated values to prepare your journal entries (assume that no reversing entries are recorded). (Do not round intermediate calculations. Use 360 days a year.)

Interest Amounts

General Journal

Complete the table to calculate the interest amounts at December 31^st and April 30^th.

		November 1	January 1
	Total Through	Through	Through
	Maturity	December 31	April 30
Principal
Rate (%)
Time
Total interest

Accepted a $14,000, 180-day, 7% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable.

Adjusted the year-end accounts for the accrued interest earned on the White note.

White honored her note when presented for payment; February has 28 days for the current year. Assume no reversing entries were made on January 1.

Exercise 9-14 Dishonoring a note LO P4

Following are selected transactions for Ridge Company.

Mar.		21		Accepted a $9,600, 180-day, 11% note dated March 21 from Tamara Jackson in granting a time extension on her past-due account receivable.
Sept.		17		Jackson dishonored her note when it is presented for payment.
Dec.		31		After exhausting all legal means of collection, Ridge Company wrote off Jacksons account against the Allowance for Doubtful Accounts.

Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. (Round your final answers to nearest whole dollar. Use 360 days a year.)

Interest Amounts

General Journal

Complete the table to calculate the interest amounts at September 17.

	Total Through
	Maturity
Principal
Rate (%)
Time
Total interest

Exercise 9-15 Selling and pledging accounts receivable LO C3

On June 30, Petrov Co. has $139,500 of accounts receivable.

July		4		Sold $7,035 of merchandise (that had cost $4,502) to customers on credit.
		9		Sold $19,530 of accounts receivable to Main Bank. Main charges a 5% factoring fee.
		17		Received $3,869 cash from customers in payment on their accounts.
		27		Borrowed $11,160 cash from Main Bank, pledging $14,508 of accounts receivable as security for the loan.

Prepare journal entries to record the above selected July transactions. (The company uses the perpetual inventory system.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Exercise 9-16 Accounts receivable turnover LO A1

The following information is from the annual financial statements of Raheem Company.

		2017			2016			2015
Net sales		$	361,000		$	292,000		$	342,000
Accounts receivable, net (year-end)			48,400			46,200			42,900

Compute its accounts receivable turnover for 2016 and 2017.