Question

Following are transactions for Ridge Company. Mar. 21 Accepted a $15, 100, 180-day, 8% note from Tamara Jackson in granting a time extension on her past-due account receivable. Sept. 17 Jackson dishonored her note. Dec. 31 After trying several times to collect, Ridge Company wrote off Jackson' s account against the Allowance for Doubtful Accounts. Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. (Do not round intermediate calculations. Round your final answers to nearest whole dollar. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at September 17. Principal Rate(%) Total Through Maturity $ 15,100 8% 180/360 Time Total interest < Interest Amounts General Journal >

Answer 1

	Total Through
	Maturity
Principal	$15100
Rate (%)	8%
Time	180/360
Total Interest	$604

Journal Entries :-

No	Date	General Journal	Debit	Credit
1	Mar 21	Notes Receivable-T Jackson	$15100
		Accounts Receivable-T Jackson		$15100
2	Sept 17	Accounts Receivable-T Jackson	$15704
		Notes Receivable-T Jackson		$15100
		Interest Revenue		$604
3	Dec 31	Allowance for doubtful accounts	$15704
		Accounts Receivable-T Jackson		$15704