Q2-18_ King Kong Co (KKC)

Q2-18   Marking guide Q2-18 8% Accounting for bad debts, bill receivable, dishonoured bills and accrued interest revenue

Following are some selected transactions of King Kong Co (KKC). Reporting date is 31 December. KKC makes adjusting entries to accrue interest and bad debt expenses using Allowance method.
2013
July 1    Sold goods to Ping Pong Co (PPC), receiving a $120 000, 9- month , 9% bill. Ignore cost of sales.
Dec 31   Made an adjusting entry to accrue interest on the PPC bill
Dec 31   The ageing schedule shows that $35,500 of accounts receivable will not be collected. The credit balance in Allowance for doubtful debts is $20,100.
2014

Apr 1    Collected the maturity value of the PPC bill.
Jun 23  Sold merchandise to ABC Supplies, receiving a 60 day, 10% bill for $27 000. Ignore cost of sales.
Aug 22  ABC Supplies dishonored (failed to pay) its bill at maturity; we converted the maturity value of the bill to an account receivable
Nov 16  Loaned $35 000 cash to Triple C, receiving a 90 day, 12% bill.
Dec 5   Collected in full on account from ABC Supplies
Dec 31  Accrued the interest on the Triple C bill

 

Requirement
Record the transactions in the journal of King Kong Co (KKC). Explanations not required.

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    Q2-18_ King Kong Co (KKC)
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