ntries for Notes Receivable, Including Year-End Entries The following selected t

Question

ntries for Notes Receivable, Including Year-End Entries The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing: 20Y3 Received from McKenna Outer wear Co., on account, a $48,000, 60-day, 10% note dated November 21 in settlement of a past due account. Nov. 21, Dec. 31. Recorded an adjusting entry for accrued interest on the note of November 21. 20Y4 Jan. 20. Received payment of note and interest from McKenna Outer Wear Co. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount. 20Y3, Nov. 21 4500 Acceed.M_ Dec. 31 20Y4, Jan. 20 I ImulThdh5fc60 a7xri.. 11/15/2017

Explanation / Answer

Date Account Debit credit Nov21 Note receivable 48000 Accounts receivable 48000 [Note collected for amount due] 31 dec Interest receivable 533 Interest revenue 533 [Interest accrued for 40 days48000*.10*40/360] jan20 cash 48800 Interest receivable 533 Interest revenue [48000*.10*20/360] 267 note receivable 48000

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