If on Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $6,000 cash. The adjusting entry for uncollectible accounts and the accrued interest revenue are:
a. The adjusting entry for uncollectible accounts are:
Jan. 24, 2022	
Debit Equipment	$6,000  
Credit Cash  $ 6,000
(To record purchase of equipment and other materials)  
Feb. 25	
Debit Account Receivable	$4,000  
Credit Service Revenue        $4,000
(To record service revenue on account)	
Feb. 28 
Debit Cash	$3,840
($4,000-$160)
Debit  Cash Discount	$160
(4%×$4,000)
Credit Account Receivable  $4,000
(To record cash receipt and discount)
  
Mar. 19 
Debit Account Receivable	$5,000  
Credit Service Revenue  $5,000
(To record service provided on account)	
Mar. 27 
Debit Cash	$4,800
($5,000-$200)
Debit Cash Discount $200	
(4%×$5,000)
Credit Account Receivable  $5,000
(To record cash receipt and discount allowed)
April 7	
Debit Cash	$8,500  
Credit Unearned Service Revenue  $8,500
(To record cash receipt for providing service in future)	
  
April 14	
Debit  Unearned Service Revenue	$8,500  
Credit Service Revenue  $8,500
(To record unearned revenue being earned)	
  
April 30
Debit Account Receivable	$7,000  
Credit Service Revenue  $7,000
(To record service provided on account)  
May 31	
Debit Note Receivable	$7,000  
Credit Account Receivable	$7,000
(To record a 3 months, 7% Note Receivable)
  
Jun. 15	
Debit Account Receivable	$29,000  
Credit Service Revenue	$29,000
(To record service provided on account)  
b. The journal entries to record the accrued interest revenue are:  
Jun. 30
Debit Interest Receivable	$40.83  
Interest Revenue  $40.83
($7,000×7%× 1/12)	
(To record accrued interest for 1 month)  
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