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P8-38B Accounting for uncollectible accounts (aging-of-receivables method), notes receivable, and accrued interest revenue Relax Recliner Chairs completed the following selected transactions: 2018 Jul. 1 Sold merchandise inventory to Go-Mart, receiving a $43,000, nine-month, 16% note. Ignore Cost of Goods Sold. Recorded cash sales for the period of $23,000. Ignore Cost of Goods Sold. Made an adjusting entry to accrue interest on the Go-Mart note. Oct. 31 Dec. 31 31 Made an adjusting entry to record bad debts expense based on an agin,g of accounts receivable. The aging schedule shows that $14,900 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $10,700. 2019 Apr. 1 Collected the maturity value of the Go-Mart note Jun, 23 Sold merchandise inventory to Allure, Corp., receiving a 60-day, 6% note for $7,000. Ignore Cost of Goods Solo. Aug. 22 Allure, Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Loaned $20,000 cash to Tench, Inc., receiving a 90-day, 8% note. Collected in full on account from Allure, Corp. Accrued the interest on the Tench, Inc. note. Nov. 16 Dec. 5 31 Record the transactions in the journal of Relax Recliner Chairs. Explanations are not required. (Round to the nearest dollar)

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