Problem 9-06A a-c Nash Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its...
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Problem 9-06A a-c
Nash Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $22,000. Notes Receivable include the following.
Date
Maker
Face Value
Term
Maturity Date
Interest Rate
April 21
Coote Inc.
$4,000
90 days
July 20
5%
May 25
Brady Co.
5,400
60 days
July 24
8%
June 30
BMG Corp.
12,600
6 months
December 31
4%
During July, the following transactions were completed.
July 5 Made sales of $4,000 on Nash credit cards.
4 Made sales of $500 on Visa credit cards. The credit card service charge is 2%.
20 Received payment in full from Coote Inc. on the amount due.
24
Received payment in full from Brady Co. on the amount due.

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Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not
indent manually. Record journal entries in the order presented in the problem. Round intermediate calculations to 2 decimal places, e.g. 225.25.)
Date
Account Titles and Explanation
Debit
Credit

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Enter the balances at July 1 in the receivable accounts and post the entries to all of the receivable accounts. (Post entries in the order ofjaumal entries posted in the previous part.) Notes Receivable a
v 0 a a
v v
e a
v 7 Accounts Receivable a a
v v
e a
v v Interest Receivable u
0 u
0

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Show the balance sheet presentation of the receivable accounts at July 31.
Nash
Balance Sheet (Partial)
$

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