E8-10 (Algo) Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest (LO 8. 3] The following transactions took place for Smart Solutions Incorporated. 2020 A. July 1 b. December 31 Acerued interest on the notes. Loaned $71,000 to enployees of the company and received back one-year, 9 percent notes. 2021 e. July 1 d. July 1 Received interest on the notes. No intereat has been recorded aince Decenber 31.) Received principal on the notes. Required: Prepare the journal entries that Smart Solutions Incorporated would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.)
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![E8-10 (Algo) Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest [(LO 8-
3]
The following transactions took place for Smart Solutions Incorporated.
2020
a. July 1
b. December 31 Accrued interest on the notes.
Loaned $71,000 to enployees of the company and received back one-year, 9 percent notes.
2021
C. July 1
d. July 1
Received interest on the notes. No interest has been recorded since December 31.)
Received principal on the notes.
Required:
Prepare the journal entries that Smart Solutions Incorporated would record for the above transactions. (If no entry is required for a
transaction/event, select "No Journal Entry Requlred" in the first account field.)
View transaction list
View jourmal entry workaheet
No
Date
General Journal
Debit
Credit
July 01, 2020
No Transaction Recorded](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86fbee95-2bd3-44ee-b7b2-e46cd91d0f37%2F139ba21f-fa12-4e4d-8d20-cf6dc63daaeb%2Fe6jh5yb_processed.jpeg&w=3840&q=75)

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