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Journalize the adjusting entry at the end of the month using the following accounts: Accumulated depreciation - automobiles, Accrued interest receivable, Allowance for doubtful accounts, Accrued interest payable, Interest expense, Depreciation expense - automobiles, Uncollectible accounts expense, Interest revenue. (1) On September 1, Medford Travel borrowed $15,000 to expand the computer facilities that make it possible for them to serve clients so successfully. Medford Travel signed a 90-day note with the bank that accrues interest at the rate of 16% per year. (Use 1/12 as time in your interest computation.) Dr. (2) On September 1, Medford Travel buys an automobile for $40,000 in cash. The car has a five-year life and a $2,500 salvage (residual) value. Dr. Cr. Cr. (3) On September 18, Frank Medford, owner of Medford Travel, inherits $21,000 which he invests in the business. The business will not need the money for another six months, so Medford Travel invests the money in a six- month certificate of deposit paying 10% interest per year. There would be a substantial penalty for prepaying the note. (Use 12/360 as time in your interest computation.) Dr. Dr. Cr. (4) During the month of September, Medford Travel billed clients a total of $20,000. (All services were billed. There were no cash revenue transactions.) Medford Travel estimates that $500 of billings will prove to be uncollectible. Cr.

Journalize the adjusting entry at the end of the month using the following accounts: Accumulated depreciation automobiles, Accrued interest receivable, Allowance for doubtful accounts, Accrued interest payable, Interest expense, Depreciation expense - automobiles, Uncollectible accounts expense, Interest revenue. (1) On September 1, Medford Travel borrowed $15,000 to expand the computer facilities that make it possible for them to serve clients so successfully. Medford Travel signed a 90-day note with the bank that accrues interest at the rate of 16% per year. (Use 1/12 as time in your interest computation.) Dr Cr. (2) On September 1, Medford Travel buys an automobile for $40,000 in cash. The car has a five-year life and a $2,500 salvage (residual) value. Dr. Cr. (3) On September 18, Frank Medford, owner of Medford Travel, inherits $21,000 which he invests in the business. The business will not need the money for another six months, so Medford Travel invests the money in a sixmonth certificate of deposit paying 10% interest per year. There would be a substantial penalty for prepaying the note. (Use 12/360 as time in your interest computation.) Dr. Cr. (4) During the month of September, Medford Travel billed clients a total of $20,000. (All services were billed. There were no cash revenue transactions.) Medford Travel estimates that $500 of billings will prove to be uncollectible. Dr. Cr

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