Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Interest Rate Term 1. Mar. 6 $75,300 5% 45 days 2. Apr. 23 24,500 9 60 days 3. July 20 41,600 5 120 days 4. Sept. 6 55,400 6 90 days 5. Nov. 29 24,100 7 60 days 6. Dec. 30 67,400 6 30 days Required: 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
|
|
Date
|
Face Amount
|
Interest Rate
|
Term
|
| 1. | Mar. 6 | $75,300 | 5% | 45 days |
| 2. | Apr. 23 | 24,500 | 9 | 60 days |
| 3. | July 20 | 41,600 | 5 | 120 days |
| 4. | Sept. 6 | 55,400 | 6 | 90 days |
| 5. | Nov. 29 | 24,100 | 7 | 60 days |
| 6. | Dec. 30 | 67,400 | 6 | 30 days |
| Required: | |
| 4. |
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