Kolton 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 $23,800. Notes Receivable include the following.
| Date |
|
Maker |
|
Face Value |
|
Term |
|
Maturity Date |
|
Interest Rate |
| April 21 |
|
Booth Inc. |
|
$6,000 |
|
90 days |
|
July 20 |
|
8% |
| May 25 |
|
Manning Co. |
|
7,800 |
|
60 days |
|
July 24 |
|
10% |
| June 30 |
|
ANF Corp. |
|
10,000 |
|
6 months |
|
December 31 |
|
6% |
During July, the following transactions were completed.
| July 5 |
|
Made sales of $4,500 on Kolton credit cards. |
| 14 |
|
Made sales of $600 on Visa credit cards. The credit card service charge is 3%. |
| 20 |
|
Received payment in full from Booth Inc. on the amount due. |
| 24 |
|
Received payment in full from Manning Co. on the amount due. |
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.)