Show balance sheet presentation of the receivable accounts

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Reference no: EM131829027

Question: Milton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800. Notes Receivable include the following

During July, the following transactions were completed.

July 5 Made sales of $4,500 on Milton credit cards.

14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.

20 Received payment in full from Coote Inc. on the amount due.

24 Received payment in full from Brady Co. on the amount due.

Instructions: (a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.)

(b) Enter the balances at July 1 in the receivable accounts and post the entries to all of the receivable accounts. (Use T-accounts.)

Reference no: EM131829027

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