Entries for Receipt and Dishonor of Note Receivable Journalize the following tra
ID: 2524192 • Letter: E
Question
Entries for Receipt and Dishonor of Note Receivable Journalize the following transactions of Trapper Jon's Productions. Assume 360 days in a year. For a compound transaction, if an amount box does not require an entry, leave it blank. June 23 Sept. 21 Oct. 21 Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. The note is dishonored by Radon Express Co. Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21. June 23 Sept. 21 Oct. 21Explanation / Answer
Date
General Journal
Debit
Credit
June.23
Notes Receivable
$48,000
Accounts Receivable
$48,000
Sept.21
Accounts Receivable
$48,960
Interest Income (48000*8%*90/360)
$960
Notes Receivable
$48,000
Oct.21
Cash
$49,368
Interest Income (48,960*30/360*10%)
$408
Accounts Receivable
$48,960
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Date
General Journal
Debit
Credit
June.23
Notes Receivable
$48,000
Accounts Receivable
$48,000
Sept.21
Accounts Receivable
$48,960
Interest Income (48000*8%*90/360)
$960
Notes Receivable
$48,000
Oct.21
Cash
$49,368
Interest Income (48,960*30/360*10%)
$408
Accounts Receivable
$48,960
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