Tardif Corporation adjusts its books monthly On September 30

Tardif Corporation adjusts its books monthly. On September 30, 2015, noteseceivable include the following: Maker Term 7 months 18 months 2 months 16 months Principal Interest $15,800 7% Issue Date Mar. 31, 2015 RES Inc. May 31, 2015 Ihara Ltd Aug. 31, 2015 Dragon Limited Sept. 30, 2015 MGH Corp 19,600 4% 4,800 7% 20,500 6% Interest is due at maturity for the RES and Dragon notes. Interest is due on the first day of the month for the Ihara and MGH notes. At September 30, the balance in the Allowance for Doubtful Notes account is nil. In October, the following selected transactions were completed. 1 31 31 31 31 Received the interest due from Ihara and MGH Received notice that Dragon was unable to pay its note as scheduled. It expects to be able to pay in the future The RES note matured and was received in full Accrued interest on the Ihara and MGH notes Analyzed the remaining notes for collectibility. Estimated that $19,600 of notes may not be collectible in the future because of significant labour issues currently being experienced by Ihara Oct.

Solution

TARDIF CORPORATION Balance sheet (Partial) October 31, 2015 Current assets Notes receivable 55900 Less: Allowance for doubtful notes accounts -15800 40100 Accounts receivable 4856 Interest receivable 168 Total receivables 45124 Notes Receivable Date Explanation Ref. Debit Credit Balance Oct 1 Balance ü 60700 Oct 31 4800 55900 Oct 31 15800 40100 Accounts Receivable Date Explanation Ref. Debit Credit Balance Oct 31 4856 4856 Interest Receivable Date Explanation Ref. Debit Credit Balance Oct 1 Balance 646 Oct 1 65 581 Oct 31 28 553 Oct 31 553 0 Oct 31 168 168