Kader Company Had the Following Balances on January 1, 2020 $\begin{array}{|l|r|}\hline \text { Allowance for doubtful accounts } & \$ 2,600 \\\hline \text { Notes receivable } & 56,000\\\hline\end{array}$

question 99

Essay

Kader Company had the following balances on January 1, 2020:
$\begin{array}{|l|r|}\hline \text { Allowance for doubtful accounts } & \$ 2,600 \\\hline \text { Notes receivable } & 56,000\\\hline\end{array}$ Prepare general journal entries for the following transactions of Kader Company:
$\begin{array}{|l|l|l|}\hline \text { Mar. } & 21 & \begin{array}{l}\text { Discounted a } \$ 10,000,9 \%, 120 \text {-day note dated March } 1 \text {, received from } \\\text { Creed Corp, at the bank at } 12 \% .\end{array} \\\hline & & \\\hline \text { Apr. } & 25 & \begin{array}{l}\text { Sold } \$ 4,500 \text { of merchandise to Finn Corp., receiving a } 10 \%, 60 \text { - day note } \\\text { receivable. }\end{array} \\\hline \text { May } & 10 & \text { Wrote off } \$ 1,800 \text { account owed by Friller as worthless. } \\\hline \text { June } & 24 & \text { Note signed by Finn Corp. on April } 25 \text { was dishonoured. } \\\hline & 29& \begin{array}{l}\text { Received a memo from the bank that the note discounted on March } 21 \\\text { Was collected }\end{array} \\\hline \text { Dec. } & 31& \text { Uncollectible accounts receivable were estimated to be } \$ 3,200 \text {. } \\\hline\end{array}$

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Definitions:

Monthly Payments

Payments required to be made every month, often in the context of loan repayments, utility bills, or subscription services.

Mortgage Loan

A specific type of loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest of previous periods on a monthly basis.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, which may involve contributions by employers, employees, or both.