Reference no: EM133062207
Question - PT ABC, a construction equipment supplier, uses the allowance method for bad debts. The transactions made include the following:
Feb 1: Selling goods on credit to PT Anita Rp 8,000,000. Cost of goods sold is Rp 4,500,000
March 15: received a 60-day note, 12% interest per annum of Rp 8,000,000 from PT Anita for the sale of credit.
April 9: write off receivables from PT Dana amounting to Rp 2,500,000 which are considered uncollectible
April 21: loaned Jaya Kusuma Rp 7,500,000 and received a 90-day note, 14% interest per annum
May 14: received interest income due from PT Anita and received an extension of 90 days note receivable, 14% interest per year. (Record both debits and credits to the note receivable account).
June 13: re-recorded the receivables of PT Dana which had been written off on April 9 and received cash for payment the receivables amounted to IDR 2,500,000
July 20: Jaya Kusuma was unable to pay the bill of lading
August 12: received payment of note receivable dated May 14 which was due from PT Anita.
August 19: received the outstanding amount from the unfulfilled note receivable from Jaya Kusuma, plus late interest 30 days at a rate of 15% per annum, calculated based on the maturity value of the note receivable.
December 16: received a 60-day, 12% per annum note receivable of Rp 12,000,000 from PT Globalindo for purchases on credit.
December 31: it is estimated that 3% of credit sales as of December 31, amounting to Rp 1,375,000,000, are considered uncollectible.
Required -
1. Prepare journal entries to record the above transactions!
2. Prepare the adjusting entries to record the interest accrued as of December 31 of PT Globalindo's notes receivable.
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