Journalize the above transactions in the accounts of Safari Games Co., which ope
ID: 2477871 • Letter: J
Question
Journalize the above transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the Chart of Accounts for exact wording of account titles.
Apr. 18. Received a $60,000, 30-day, 7% note dated April 18 from Glenn Cross on account. 30. Received a $42,000, 60-day, 8% note dated April 30 from Rhoni Melville on account. May 18. The note dated April 18 from Glenn Cross is dishonored, and the customer’s account is charged for the note, including interest. June 29. The note dated April 30 from Rhoni Melville is dishonored, and the customer’s account is charged for the note, including interest. Aug. 16. Cash is received for the amount due on the dishonored note dated April 18 plus interest for 90 days at 8% on the total amount debited to Glenn Cross on May 18. Oct. 22. Wrote off against the allowance account the amount charged to Rhoni Melville on June 29 for the dishonored note dated April 30.Explanation / Answer
Answer: Journal Entry:
18 Apr Notes Receivable A/C Dr. $ 60,000
To Accounts Receivable $ 60,000
30-Apr Notes Receivable A/C Dr. $ 42,000
To Accounts Receivable A/C $ 42,000
18-May Accounts Receivable A/C Dr. $ 60,000
Interest Receivable A/C Dr. $ 350 ($ 60,000 * 7% *1 /12)
To Notes Receivable $ 60,000
To Interest Income $ 350
29 Jun Accounts Receivable A/C Dr. $ 42,000
Interest Receivable A/C Dr. $ 560 ($ 42,000 * 8% *2 /12)
To Notes Receivable $ 42,000
To Interest Income $ 560
16 Aug Cash A/C Dr. $ 61557
To Accounts Receivable A/C - Glenn Cross $60350
To Interest revenue A/C $1207 ($60350*8%3/12)
22 Oct. Allowances for doubtful Accounts A/C dr. $42560
To Accounts receivable A/C $42560
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