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P9-6B Schottenheimer Co. closes its books monthly. On June 30, selected ledger account

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P9-6B Schottenheimer Co. closes its books monthly. On June 30, selected ledger account
balances are:

Notes Receivable $46,000
Interest Receivable $ 300

Notes Receivable include the following.
Date Maker Face Term Interest

May 16 Baylor Inc. $ 6,000 60 days 10%
May 25 Felter Co. 25,000 60 days 9%
June 30 ERV Corp. 15,000 6 months 8%

During July, the following transactions were completed.

July 5 Made sales of $6,200 on Schottenheimer Co. credit cards.

14 Made sales of $700 on Visa credit cards.The credit card service charge is 3%.

14 Added $440 to Schottenheimer Co. credit card customer balances for finance charges
on unpaid balances.

15 Received payment in full from Baylor Inc. on the amount due.

25 Received notice that the Felter Co. note has been dishonored. (Assume that Felter Co.
is expected to pay in the future.)

Instructions

(a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable.
(Interest is computed using 360 days.)

(b) Enter the balances at July 1 in the receivable accounts. Post the entries to all of the receivable
accounts.

(c) Show the balance sheet presentation of the receivable accounts at July 31.

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