Please correct whats in red. thank you Problem 8-8A (Part Level Submission) Tard
ID: 2552446 • Letter: P
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Please correct whats in red. thank you
Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthly. On September 30, 2015, notes receivable include the following: Maker Principal Interest Term $18,200 596 Issue Date Mar. 31, 2015 RES Inc. May 31, 2015 Ihara Ltd. Aug. 31, 2015 Dragon Umited Sept. 30, 2015 MGH Corp 7 months 17,400 696 18 months 2months 19,800 4% 16months 4,600 9% Interest is due at maturity for the RES and Dragon notes. Interest is due on the first day of the month for the Ihara and MGH notes. At September 30, the balance in the Allowance for Doubtful Notes account is nil. In October, the following selected transactions were completed Oct. 1 Received the interest due from Ihara and MGH 31 Received notice that Dragon was unable to pay its note as scheduled. It expects to be able to pay in the future 31 The RES note matured and was received in full. 31 Accrued interest on the Ihara and MGH notes. 31 Analyzed the remaining notes for collectibility. Estimated that $17,400 of notes may not be collectible in the future because of significant labour issues currently being experienced by Ihara.Explanation / Answer
Date Account Debit credit oct 1 cash 87 Interest revenue [17400*.06*1/12] 87 oct 31 Accounts receivable 4669 Note receivable 4600 Interest receivable [4600*.09*1/12] 34.5 Interest revenue 34.5 [being interest accrued till 30 sep is credited to interest receivable (31aug -30sep) oct 31 cash 18731 Note receivable 18200 interest receivable [18200*.05*6/12] [31march -30sep] 455 interest revenue [18200*.05*1/12][1oct -31oct] 76 oct 31 interest receivable 87 interest revenue 87 oct 31 Bad debt expense 17400 Allowance for uncollectible account 17400
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