Exercise 4-17 (Algo) Notes receivable-interest accrual and collection LO 4-6, 4-7 On May 1, 2022, Tabor Company received an $5,400 note from a customer in settlement of an $5,400 account receivable from that customer. The note bore interest at the rate of 14% per annum, and the note plus interest was payable April 30, 2023. Required: Use the horizontal model to show the effects (+ for addition and - for subtraction) of each of these transactions and adjustments: a. Receipt of the note on May 1, 2022. b. The accrual of interest at December 31, 2022. c. The collection of the note and interest on April 30, 2023. b. نه نه نه نه نه نه نه C. Transaction Type of financial statement Accounts Amount
Exercise 4-17 (Algo) Notes receivable-interest accrual and collection LO 4-6, 4-7 On May 1, 2022, Tabor Company received an $5,400 note from a customer in settlement of an $5,400 account receivable from that customer. The note bore interest at the rate of 14% per annum, and the note plus interest was payable April 30, 2023. Required: Use the horizontal model to show the effects (+ for addition and - for subtraction) of each of these transactions and adjustments: a. Receipt of the note on May 1, 2022. b. The accrual of interest at December 31, 2022. c. The collection of the note and interest on April 30, 2023. b. نه نه نه نه نه نه نه C. Transaction Type of financial statement Accounts Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 4-17 (Algo) Notes receivable-interest accrual and collection LO 4-6, 4-7
On May 1, 2022, Tabor Company received an $5,400 note from a customer in settlement of an $5,400 account receivable from that
customer. The note bore interest at the rate of 14% per annum, and the note plus interest was payable April 30, 2023.
Required:
Use the horizontal model to show the effects (+ for addition and - for subtraction) of each of these transactions and adjustments:
a. Receipt of the note on May 1, 2022.
b. The accrual of interest at December 31, 2022.
c. The collection of the note and interest on April 30, 2023.
b.
نه
نه
نه
نه
نه
نه
نه
C.
Transaction
Type of financial statement
Accounts
Amount
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