Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Interest Rate Term 45 days 60 days 120 days 90 days 60 days Mar. 6 $80,000 1. 5% Apr. 23 July 20 Sept. 6 2. 24,000 42,000 3. 54,000 4. 5. Nov. 29 27,000 72,000 30 days 6. Dec. 30 Instructions 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. 2. Journalize the entry to record the dishonor of Note (3) on its due date. 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January.
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Interest Rate Term 45 days 60 days 120 days 90 days 60 days Mar. 6 $80,000 1. 5% Apr. 23 July 20 Sept. 6 2. 24,000 42,000 3. 54,000 4. 5. Nov. 29 27,000 72,000 30 days 6. Dec. 30 Instructions 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. 2. Journalize the entry to record the dishonor of Note (3) on its due date. 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 9P
Related questions
Question
![Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate
Co. received the following notes:
Date
Face Amount
Interest Rate
Term
45 days
60 days
120 days
90 days
60 days
Mar. 6
$80,000
1.
5%
Apr. 23
July 20
Sept. 6
2.
24,000
42,000
3.
54,000
4.
5.
Nov. 29
27,000
72,000
30 days
6.
Dec. 30
Instructions
1. Determine for each note (a) the due date and (b) the amount of interest due at
maturity, identifying each note by number.
2. Journalize the entry to record the dishonor of Note (3) on its due date.
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on
December 31.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6)
in January.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb464fc7a-60eb-485b-a28e-53c957c273c9%2Fe385fd31-6441-47aa-b1f6-ff9abb7cb7e7%2Fbo8odxd.jpeg&w=3840&q=75)
Transcribed Image Text:Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate
Co. received the following notes:
Date
Face Amount
Interest Rate
Term
45 days
60 days
120 days
90 days
60 days
Mar. 6
$80,000
1.
5%
Apr. 23
July 20
Sept. 6
2.
24,000
42,000
3.
54,000
4.
5.
Nov. 29
27,000
72,000
30 days
6.
Dec. 30
Instructions
1. Determine for each note (a) the due date and (b) the amount of interest due at
maturity, identifying each note by number.
2. Journalize the entry to record the dishonor of Note (3) on its due date.
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on
December 31.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6)
in January.
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