Entries for Receipt and Dishonor of Note Receivable Journalize the following tra
ID: 2425069 • Letter: E
Question
Entries for Receipt and Dishonor of Note Receivable
Journalize the following transaction of Sanchez Productions. Assume 360 days in a year. For a compound tranaction,
July 12. Received a 140000,120- day,7% note dated July 12 from Accolade Co. on account.
Nov. 9. The note is dishonored by Accolade Co.
Dec. 9. Received the amount due on the dishonored note plus interest for 30 days at 9% on the total amount charged to Accolade Co. on November 9.
DRAFT:
July 12 Notes Receivable ______________
Accounts Receivable Accolade Co. _______________
Nov.9 Accounts Receivable Accolade Co._____________
Notes Receivable ______________
Interest Revenue _______________
Dec.9 Cash ______________
Accounts Receivable- Accolade Co. _______________
Interest Revenue _______________
Explanation / Answer
Solution:
Date Journal Debit Credit Jul-12 Notes Payble 140,000 Account Receivable 140,000 Nov-09 Account Receivable 143,222 Notes Payble 140,000 Interest Revenue - $ 140,000 *7%*120/365 3,221.92 Dec-09 Cash 144,027.40 Account Receivable 143,222 Interest Revenue - 140,000*30/365*7% 805.48Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.