Brad Company had the following transactions during the current year:
May 7 Received an $25,200, 75-day, 10% note from S. Sabtini in payment of account receivable.
June 1 Wrote off customer M. Rotter's account, $2,700. (Brad Company uses the allowance method of recording credit losses.)
July 21 S. Sabtini paid note due today.
Sept 15 M. Rotter paid account written off on June 1.
Dec 19 Received a $36,000, 60-day, 9% note from Z. Inman on account.
Required:
a. Record the above transactions in general journal form.
b. Make any necessary adjusting entries for interest at December 31.

Question

Brad Company had the following transactions during the current year: 
May 7 Received an $25,200, 75-day, 10% note from S. Sabtini in payment of account receivable.
June 1 Wrote off customer M. Rotter's account, $2,700. (Brad Company uses the allowance method of recording credit losses.)
July 21 S. Sabtini paid note due today.
Sept 15 M. Rotter paid account written off on June 1.
Dec 19 Received a $36,000, 60-day, 9% note from Z. Inman on account.
Required:
a. Record the above transactions in general journal form.
b. Make any necessary adjusting entries for interest at December 31.

Quizplus · Accepted Answer

The Answer of Brad Company had the following transactions during the current year: 
May 7 Received an $25,200, 75-day, 10% note from S. Sabtini in payment of account receivable.
June 1 Wrote off customer M. Rotter's account, $2,700. (Brad Company uses the allowance method of recording credit losses.)
July 21 S. Sabtini paid note due today.
Sept 15 M. Rotter paid account written off on June 1.
Dec 19 Received a $36,000, 60-day, 9% note from Z. Inman on account.
Required:
a. Record the above transactions in general journal form.
b. Make any necessary adjusting entries for interest at December 31.

Brad Company Had the Following Transactions During the Current Year