Following are transactions for Ridge Company. March 21 Accepted a $11,900, 180-day, 7% note from Tamara Jackson in granting a time extension on her past-due account receivable. September 17 Jackson dishonored her note. December 31 After trying several times to collect, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts. Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. Note: Do not round Intermediate calculations. Round your final answers to nearest whole dollar. Use 360 days a year.
Following are transactions for Ridge Company. March 21 Accepted a $11,900, 180-day, 7% note from Tamara Jackson in granting a time extension on her past-due account receivable. September 17 Jackson dishonored her note. December 31 After trying several times to collect, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts. Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. Note: Do not round Intermediate calculations. Round your final answers to nearest whole dollar. Use 360 days a year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following are transactions for Ridge Company.
March 21 Accepted a $11,900, 180-day, 7% note from Tamara Jackson in granting a time extension on her past-due account
receivable.
September 17 Jackson dishonored her note.
December 31 After trying several times to collect, Ridge Company wrote off Jackson's account against the Allowance for Doubtful
Accounts.
Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries.
Note: Do not round Intermediate calculations. Round your final answers to nearest whole dollar. Use 360 days a year.
Complete this question by entering your answers in the tabs below.
Interest
Amounts
General
Journal
Complete the table to calculate the interest amounts at September 17.
Total Through
Principal
Maturity
Rate (%)
7%
Time
180/360
Total interest
General Journal >
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