Brockman Company closes its books on October 31.

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January 14th, 2018

Brockman Company closes its books on October 31. On September 30, the Notes Receivable account balance is $18,800. Notes Receivable include the following.DateMakerFace ValueTermMaturity DateInterest RateAug. 16Stuhmer Inc.$6,00060 daysOct. 159%Aug. 25Moberg Co.3,0002 monthsOct. 257%Sept. 30Earnest Corp.9,8006 monthsMar. 306%Interest is computed using a 360-day year. During October, the following transactions were completed.Oct. 7 Made sales of $4,600 on Brockman credit cards.Oct. 12 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.Oct. 15 Received payment in full from Stuhmer Inc. on the amount due.Oct. 25 Received payment in full from Moberg Co. on amount due.Instructions(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.)(b) Enter the balances at October 1 in the receivable accounts and post the entries to all of the receivable accounts. (Use T accounts.)(c) Show the balance sheet presentation of the receivable accounts at October 31.

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