Question

help me solve this please. thank you

Following are transactions for Ridge Company. Mar. 21 Accepted a $12,800, 180-day, 78 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, Total Through Maturity Principal Rate(%) Time Total interest interest Amounts General Journal >

Answer 1

Table showing interest calculation:

	Total through
	Maturity
Principal ($)	12,800
Rate(%)	7%
Time (days)	180
Total interest ($) (12,800 × 7% × 180/360)	448

Journal entries:

Date	General Journal	Debit($)	Credit($)
Mar 21	Notes receivable -Tamara Jackson a/c    To Accounts receivable - Tamara Jackson a/c (Being acceptance of $ 12,800 note recorded)	12,800	12,800
Sept 17	Accounts receivable - Tamara Jackson a/c To Interest revenue a/c To Notes receivable -Tamara Jackson a/c (Being dishonoured note recorded and interest recorded)	13,248	448 12,800
Dec 31	Allowances for doubtful accounts a/c To Accounts receivable - Tamara Jackson a/c (Being accounts receivable-Tamara Jackson wrote off)	13,248	13,248