Answer:
Great Adventures
a) Adjusting Entry for Uncollectible Accounts:
Date General Journal Debit Credit
Jun. 30 Uncollectible Expense $2,320
Allowance for Uncollectibles $2,320
To provide 8% allowance for uncollectibles.
b) To accrue one month of interest on the note receivable:
Date General Journal Debit Credit
Jun. 30 Interest Receivable $40.83
Interest on Notes $40.83
To accrue one month of interest.
c) GREAT ADVENTURES, INC.
Partial Balance Sheet as at June 30, 2022
Assets
Current Assets:
Accounts Receivable $29,000
less allowance for uncollectibles 2,320
Net Accounts Receivable $26,680
Explanation:
a) Accounts Receivable
Date Description Debit Credit Balance
Feb. 25 Kr. Kendall's Boys Scout $4,000 $4,000
Feb. 28 Cash $3,840 160
Feb. 28 Cash Discount 160 0
Mar. 19 Reynold 5,000 5,000
Mar. 27 Cash 4,800 160
Mar. 27 Cash Discount 200 0
Apr. 7 Cash 8,500 (8,500)
Apr. 14 Elks Lodge 8,500 0
Apr. 30 Myers Manufacturing 7,000 7,000
May 31 7% Note Receivable 7,000 0
Jun. 15 MBA Groups 29,000 29,000
b) Allowance for uncollectibles = $29,000 x 8% = $2,320
c) Interest on Notes = ($7,000 x 7%)/12 = $40.83
