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Farwell Company closes its books monthly. On September 30, selected ledger account balances are:

Notes Receivable include the following.

Oct. 7	Made sales of $6,900 on Farwell credit cards.
12	Made sales of $900 on MasterCard credit cards. The credit card service charge is 3%.
15	Added $460 to Farwell customer balance for finance charges on unpaid balances.
15	Received payment in full from K. Goza Inc. on the amount due.
24	Received notice that the Skinner note has been dishonored. (Assume that Holt is expected to pay in the future.)

Interest is computed using a 360-day year. During October, the following transactions were completed.

Notes Receivable	$37,000
Interest Receivable	183

Date	Maker	Face	Term	Interest
Aug. 16	K. Goza Inc.	$12,000	60 days	8%
Aug. 25	Holt Co.	9,000	60 days	7%
Sept. 30	Noblitt Corp.	16,000	6 months	9%

A. Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable.

B. Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts. (Check Figure: Accounts Receivable $16,465)

C. Show the balance sheet presentation of the receivable accounts at October 31. (Check Figure: Total Receivables $32,585)

(a)	General Journal
Date	Account Titles				Debit	Credit
Oct. 7
12
15
15
24
31

Notes Receivable
Date	Explanation			Ref.	Debit	Credit	Balance
Oct. 1	Balance						37,000
Accounts Receivable
Date	Explanation			Ref.	Debit	Credit	Balance
Interest Receivable
Date	Explanation			Ref.	Debit	Credit	Balance
Oct. 1	Balance						183
(c)
Assets
Current Assets

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