Answer:
Dr Notes Receivable $52,200
Cr Cash $52,200
Dec. 11
Dr Notes Receivable $1,800
Cr Cash $1,800
Dec. 16
Dr Notes Receivable $4,800
Cr Accounts Receivable $4,800
Dec. 31
Dr Interest Receivable $637
Cr Interest Revenue $637
Step-by-step explanation:
Preparation of the journal entries
Nov 1
Dr Notes Receivable $52,200
Cr Cash $52,200
Dec. 11
Dr Notes Receivable $1,800
Cr Cash $1,800
Dec. 16
Dr Notes Receivable $4,800
Cr Accounts Receivable $4,800
Dec. 31
Dr Interest Receivable $637
Cr Interest Revenue $637
($609+$8+$20)
Working:.
Interest Revenue
Note that 1 Nov to Dec 31st will give us 2 months
=$52,200 x 0.07 x 2/12 =$609
Note that Dec 11 to Dec 31st will give us 20 days
=$1,800 x 0.08 x 20/360 =$8
Note that Dec 16 to Dec 31st will give us 15 days
=$4,800 x 0.10 x 15/360=$20
