Question

Journalize the following transactions in the accounts of Safari Games Co., which operates a riverboat casino. Assume 360 days in a year. For a compound transaction, if an amount box does not require an entry, leave it blank. Round final answers to the nearest cent when necessary.

Apr. 18. Received a $21,600, 60-day, 10% note dated April 18 from Glenn Cross on account.

30. Received a $37,200, 60-day, 6% note dated April 30 from Rhoni Melville on account.

May 18. The note dated April 18 from Glenn Cross is dishonored, and the customer’s account is charged for the note, including interest.

June 29. The note dated April 30 from Rhoni Melville is dishonored, and the customer’s account is charged for the note, including interest.

Aug. 16. Cash is received for the amount due on the dishonored note dated April 18 plus interest for 90 days at 6% on the total amount debited to Glenn Cross on May 18.

Oct. 22. Wrote off against the allowance account the amount charged to Rhoni Melville on June 29 for the dishonored note dated April 30.

Answer 1

SOLUTION

Date	Accounts titles and Explanation	Debit ($)	Credit ($)
April 18	Note receivable	21,600
	Account receivable - Glenn Cross		21,600
April 30	Note receivable	37,200
	Account receivable - Rhoni Melville		37,200
May 18	Account receivable - Glenn Cross	21,960
	Note receivable		21,600
	Interest revenue (21,600*10%*60/360)		360
June 29	Account receivable - Rhoni Melville	37,572
	Note receivable		37,200
	Interest revenue (37,200*6%*60/360)		372
Aug.16	Cash	22,289
	Account receivable - Glenn Cross		21,960
	Interest revenue (21,960*6%*90/360)		329
Oct.22	Allowance for uncollectible accounts	37,572
	Account receivable - Rhoni Melville		37,572