need help on the journal entries I have attached what I got wrong/correct for re
ID: 2537909 • Letter: N
Question
need help on the journal entries
I have attached what I got wrong/correct for reference
The following selected transactions are from Ohlm Company 2015 Dec. 16 Accepted a S 10,800 60-day, 8% note dated this day in granting Danny Todd a time extension on his past due account recen able 31 Made an adjusting entry to record the accrued interest on the Todd note 2016 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $6,100, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a $2,400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note when presented for payment. May 31 Midnight Co. refuses to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%. Aug. 7 Accepted a $7,450, 90-day, 10% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. Sept. 3 Accepted a $2,100, 60-day, 10% note dated this day in granting Noah Carson a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Carson for the September 3 note Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note. Dec. 1 Wrote off the Privet account against Allowance for Doubtful Accounts.Explanation / Answer
Date Particulars Debit Credit Dec-16 Notes receivable 10,800 Accounts receivable 10,800 De-31 Interest receivable 36 Interest revenue 36 Feb-14 Cash 10,944 Interest revenue 144 Notes receivable 10,800 March-2 Notes receivable 6,100 Accounts receivable 6,100 Mar-17 Notes receivable 2,400 Accounts receivable 2,400 Apr-16 Accounts receivable 2,414 Notes receivable 2,400 Interest revenue 14 May-31 Accounta receivable 6,222 Notes receivable 6,100 Interest receivable 122 Jul-16 Cash 6,286 Interest revenue 64 Accounts receivable 6,222 Aug-7 Notes receivable 7,450 Accounts receivable 7,450 Sep-3 Notes receivable 2,100 Accounts receivable 2,100 Nov-2 Cash 2,135 Notes receivable 2,100 Interest receivable 35 Nov-5 Cash 7,636 Notes receivable 7,450 Interest receivable 186 Dec-1 Allownce for doubtful accounts 2,414 Accounts receivable 2,414
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