Sage Hill Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company’s 12-month, 6% note in settlement of a $39,000 account receivable. July 1, 2022 Loaned $18,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31, 2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Apr. 1, 2023 Thomas Slocombe dishonored its note; Sage Hill expects it will eventually collect.

Explanation:

Loan to Thomas Slocombe = $18000 on 9 month 12% note

Interest Receivable (Interest up to Dec 31 2022) = $18000 x 12% x 6/12 = $1080

Interest Revenue (Interest from 1 Jan to 31 march 2023) = $18000 * 12% * 3/12 = $540

Account receivable = $18000 + $1080 + $540 = $19620

Dr Accounts receivable $19620

Cr Notes receivable $18000

Cr Interest revenue $540

Cr Interest receivable $1080

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police