Question

Apr.	18.	Received a $50,400, 30-day, 6% note dated April 18 from Glenn Cross on account.
	30.	Received a $46,200, 60-day, 5% 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 5% 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.

Apr.	18.	Received a $50,400, 30-day, 6% note dated April 18 from Glenn Cross on account.
	30.	Received a $46,200, 60-day, 5% 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 5% 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.

Journalize the above transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the Chart of Accounts for exact wording of account titles.

X

Journal

Journalize the transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the Chart of Accounts for exact wording of account titles. Round all computations to the nearest whole dollar.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
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4
5
6
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8
9
10
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14
15

Answer 1

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	April 18	Notes receivable		$50400
2		Accounts receivable- Glenn Cross			$50400
3	April 30	Notes receivable		$46200
4		Accounts receivable- Rhoni Melville			$46200
5	May 18	Accounts receivable- Glenn Cross (50400+252)		$50652
6		Notes receivable			$50400
7		Interest revenue (50400*6%*30/360)			$252
8	June 29	Accounts receivable- Rhoni Melville (46200+385)		$46585
9		Notes receivable			$46200
10		Interest revenue (46200*5%*60/360)			$385
11	Aug 16	Cash (50652+633		$51285
12		Accounts receivable- Glenn Cross			$50652
13		Interest revenue (50652*5%*90/360)			$633
14	Oct 22	Allowance for doubtful accounts		$46585
15		Accounts receivable- Rhoni Melville			$46585

NOTE:- For the purpose of calculation of interest revenue, the number of days is taken as 360 days.