Question

Following are transactions for Ridge Company Mar. 21 Accepted a $4,300, 180-day, 12% note from Tamara Jackson in granting a tine 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. Total Through Maturity Principal Rate(%) Time Total interest General Journal >

Answer 1

A
	Total through maturity
Principal	4300
Rate(%)	12%
Time	180/360
Total interest	258
B
		Debit	Credit
Mar 21	Notes receivable- T Jackson	4300
	Accounts receivable- T. Jackson		4300
Sept 17	Accounts receivable- T. Jackson	4558
	Notes receivable- T Jackson		4300
	Interest revenue		258
Dec 31	Allowance for doubtful accounts	4558
	Accounts receivable- T. Jackson		4558