Problem 8-8A (Part Level Submission) Tardif Corporation adjusts is books monthly
ID: 2551551 • Letter: P
Question
Problem 8-8A (Part Level Submission) Tardif Corporation adjusts is books monthly, On September 30, 2015, notes receivable include the following: Issue Date Mar. 31, 2015 RES Inc May 31, 2015 Ihara Ltd. Maker Principal Interest Term $16,200 6% 7months 18,900 5% 18 months Aug. 31, 2015 Dragon Limited 6,000 6% 2months 21,100 4% 16months Sept. 30, 2015 MGH Corp. Interest is due at maturity for the RES and Dragon notes. Interest is due on the first day of the month for the Ihara and MGH notes. At September 30, the balance in the Allowance for Doubtful Notes account is nil. In October, the following selected transactions were completed 1 31 Received notice that Dragon was unable to pay its note as scheduled. It expects to be able to pay in the future. 31 The RES note matured and was recelwed in full 31 Accrued interest on the Ihara and MGH notes. 31 Analyzed the remaining notes for collectibility. Estimated that $18,800 of notes may not be collectible in the future because of significant labour issues currently being experienced by Oct. Received the interest due from Ihara and MGH. Ihara. Your answer is partially correct. Try again. Calculate the balance in the Interest Receivable and Notes Receivable accounts at September 30, 2015. (Round answers to O decimal places, e.g. 5,275.) 2907 Balance in the Notes ReceivableExplanation / Answer
Principal Interest rate No. of months due Interest receivable balance Date Accounting Titles and explanations Debit Credit RES $ 16,200 6% 6 $ 486 1-Oct Cash $ 149 Ihara $ 18,800 5% 1 $ 78 Interest receivable $ 149 Dragon $ 6,000 6% 1 $ 30 31-Oct Accounts Receivable $ 6,060 MGH $ 21,100 4% 1 $ 70 Interest receivable $ 30 Total $ 62,100 $ 665 Notes Receivable $ 6,000 Interest revenue $ 30 31-Oct Cash $ 16,767 Notes Receivable $ 16,200 Balance in the interest receivable $ 665 Interest Revenue $ 81 Balance in the notes receivable 62100 Interest receivable $ 486 31-Oct Interest receivable $ 149 Interest revenue $ 149 31-Oct Bad debt expenses $ 18,878 Allowance for doubtful accounts $ 18,878 Please check and let me know in case you face any issues.