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elena55 [62]
3 years ago
15

Following are selected transactions for Ridge Company.

Business
1 answer:
Vanyuwa [196]3 years ago
5 0

Answer:

1) <u>Calculating the interest amount at September 17, (using 360 days a year)</u>

                           Total Through Maturity

Principal              $9,500

Rate                    8%

Time                   180/360

Total Interest      $380

2) Preparing the Journal Entries for above transactions

<u>Date</u><u>                            </u><u>General Journal </u><u>                        </u><u>Debit </u><u>             </u><u>Credit</u>

Mar 21              Notes receivable-T Jackson              $9,500

                         Account receivable-T Jackson                                 $9,500

Sept 17             Accounts receivable-T Jackson         $9,880

                        Notes receivable-T Jackson                                      $9,500

                        Interest Revenue                                                        $380

Dec 31              Allowance for Doubtful Accounts       $9880

                        Accounts receivable-T Jackson                                $9,880

Explanation:

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