Seerden Servicing monitors its accounts receivable carefully. A review determined that a customer, John Daley, was unable to pay his $ pastdue account. Seerden accepted a day promissory note dated April bearing interest of in exchange for Daley's account. Another customer, ABC Drilling, signed a sixmonth note dated May in place of its $ pastdue accounts receivable. On May Seerden's yearend, accrued interest was recorded on the notes receivable. John Daley honoured his note on the maturity date. ABC Drilling dishonoured its note on the maturity date. On November Seerden Servicing wrote off ABC Drilling's account as it was determined to be uncollectible.
Required:
Prepare Seerden Servicing's entries for each of the following dates: Do not round intermediate calculations. Round your answers to decimal places.
a April
b May
c May
d Maturity date of John Daley's note
e Maturity date of ABC Drilling's note
f November
Journal entries:
record acceptance of a day note.
record acceptance of a sixmonth note.
Record the accrued interest at the year end.
Record the collection of note.
Record the dishonour of note.
Record the entry writeoff of account receivable.