Question

Entries for Receipt and Dishonor of Notes Receivable

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

Mar. 29.Received a $57,600, 60-day, 8% note dated March 29 from Karie Platt on account.

Apr. 30.Received a $24,600, 60-day, 10% note dated April 30 from Jon Kelly on account.

May 28.The note dated March 29 from Karie Platt is dishonored, and the customer's account is charged for the note, including interest.

June 29.The note dated April 30 from Jon Kelly is dishonored, and the customer's account is charged for the note, including interest.

Aug. 26.Cash is received for the amount due on the dishonored note dated March 29 plus interest for 90 days at 12% on the total amount debited to Karie Platt on May 28.

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

Mar. 29

Apr. 30

May 28

June 29

Aug. 26

Oct. 22

Answer 1

Date	Account titles & Explanations				Debit	Credit
29-Mar	Note receivable				57,600
	Account receivable-karie Platt					57,600
30-Apr	Note receivable				24,600
	Account receivable-Jon Kelly					24,600
28-May	Account receivable-karie platt				58,368
	interest income		(57600*8%*60/360)			768
	note receivable					57,600
29-Jun	Account receivable-Jon Kelly				25,010
	interest income		(24,600*10%*60/360)			410
	note receivable					24,600
26-Aug	Cash				60,119
	interest income		58368*12%*90/360			1751
	Account receivable -karie platt					58,368
22-Oct	Allowance for Doubtful accounts				25,010
	Account receivable-Jon Kelly					25,010