Kingbird, Inc. closes its books on its July 31 year-end. The company does not make...
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Accounting
Kingbird, Inc. 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 $ 26,600. Notes Receivable include the following.
Date
Maker
Face Value
Term
Maturity Date
Interest Rate
April 21
Coote Inc.
$ 5,600
90 days
July 20
8%
May 25
Brady Co.
9,000
60 days
July 24
10%
June 30
BMG Corp.
12,000
6 months
December 31
8%
During July, the following transactions were completed.
July 5
Made sales of $ 4,850 on Kingbird, Inc. credit cards.
14
Made sales of $ 800 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. Enter the balances at July 1 in the receivable accounts and post the entries to all of the receivable accounts. (Post entries in the order of journal entries posted in the previous part.)
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