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Learning Objectives 1, 3, 4 28-30A Accounting for uncollectible accounts (aging-of-receivables method), credit card sales, notes receivable, and accrued interest revenue Quality Recliner Chairs completed the following selected transactions: TER 8 Dec 31, 2016 Interest Receivable $3,600 2016 Jul 1 Oct. 31 Nov 3 Dec 31 31 Sold merchandise inventory to Gray Mart, receiving a $45,000, nine-month, 16% note. Ignore Cost of Goods Sold. Recorded credit and debit card sales for the period of $23,000. Use the gross method. Ignore Cost of Goods Sold. Card processor drafted company's checking account for processing fee of $460. Made an adjusting entry to accrue interest on the Gray Mart note Made an adjusting entry to record bad debts expense based on an aging of accounts receivable. The aging schedule shows that $15,200 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $11.400. 2017 Apr. 1 Jun. 23 Aug, 22 Collected the maturity value of the Gray Mort note. Sold merchandise inventory to Artist Company receiving a 60-day, 6% note for $8,000. Ignore Cost of Goods Sold Artist Company dishonored its note at maturity, the business converted the maturity value of the note to an account receivable. Loaned $22,000 cash to Creed Company receiving a 90-day, 12% note. Collected in full on account from Artist Company Accrued the interest on the Creed Company note. Nov. 16 Dec 5 31 Record the transactions in the journal of Quality Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.)

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