week 5 principles of acctg 495488

P8-29A PrintTYK Test Your Knowledge Student Name Course Name Student ID: Date: Requirements 1. Students please fill-in areas that are shaded Req. 1 DEBIT CREDIT Journal DATE ACCOUNTS AND EXPLANATIONS Oct 31 31 P8-29A Accounting for uncollectible accounts (aging of accounts method), card sales, notes receivable, and accrued interest revenue LO 2, 4, 5 [20-30 minutes] Relaxing Recliner Chairs completed the following selected transactions: Sold inventory to Great – Mart, receiving a $45,000, nine-month, 12% note. Ignore cost of goods sold. Recorded credit- and debit-card sales for the period of $21,000. Card processor drafted company’s checking account for processing fee of $410. Made an adjusting entry to accrue interest on the Great – Mart note. Made an adjusting entry to record uncollectible account expense based on an aging of accounts receivable. The aging schedule shows that $15,200 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for uncollectible accounts is $11,600. Jul 1 Nov 3 Dec 31 Collected the maturity value of the Great – Mart note. Sold merchandise to Ambiance, Corp., receiving a 60-day, 9% note for $13,000. Ignore cost of goods sold. Ambiance, Corp., dishonored its note (failed to pay) at maturity; we converted the maturity value of the note to an account receivable. Loaned $21,000 cash to Creed, Inc., receiving a 90-day, 8% note. Collected in full on account from Ambiance, Corp. Accrued the interest on the Creed, Inc., note. Apr 1 Jun 23 Aug 22 Nov 16 Dec 5 Record the transactions in the journal of Relaxing Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.) Interest revenue ($45,000 X .12 X 3/12) Accounting, 9e Jennie April 23 2011.00 31.00 2012.00 31.00 2011.00 2012.00 1350.00 45000.00 0.12 0.25 Print Test Your…