C | Not secure lezto.m tpx RecRoom Equipment Company received an $11,600, six-mo

Question

C | Not secure lezto.m tpx RecRoom Equipment Company received an $11,600, six-month, 6 percent note to settle an $11,600 unpaid balance owed by a customer. a. The note is accepted by RecRoom on November 1, causing the company to increase its Notes Recelvable and decrease its Accounts Receivable b. RecRoom adjusts its records for interest eamed to its December 31 year-end c. RecRoom receives the interest on the note's maturity date. d RecRoom receives the principal on the note's maturity date. Prepare journal entries to record the above transactions for RecRoom (If no entry is required for a transactionlevent, select "No Jourmal Entry Required" in the first account field. Do not round intermedlate calculations.) View transaction list Journal entry worksheet Record the receipt of a note on November 1 for $11,600 to settle an outstanding accounts recelvable balance of a customer Note: Enter debits before credits General Journal Debit Nov 01 Notes Recelvable (short-term) 116,000 Accounts Recelvable 116,000 Record entry Clear entry view general journal Type here to search Co

Explanation / Answer

1. To record receipt of six-month 6% Note      on November 1 to settle account receivable Date Account Title Debit Credit Nov.1 Note Receivable 11600 Accounts Receivable 11600 2. To record interest accrued on December 31 Date Account Title Debit Credit Dec.31 Interest Receivable 116 Interest Revenue 116 3. To record receipt of interest on the note's maturity. Date Account Title Debit Credit Dec.31 Cash 348 Interest Revenue 232 Interest receivable 116 4. To record the receipt of the full principal on the note Date Account Title Debit Credit Dec.31 Cash 11600 Note Receivable 11600

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