Gambit Stores accepts from Leonard Co. a $3,400, 90- day, 6% note dated May 10 in settlement of Leonard's overdue account. (a) What is the maturity date of the note? (b) What entry does Gambit make at the maturity date, assuming Leonard pays the note and interest in full at that time?

Gambit Stores accepts from Leonard Co. a $3,400, 90- day, 6% note dated May 10 in settlement of Leonard's overdue account. (a) What is the maturity date of the note? (b) What entry does Gambit make at the maturity date, assuming Leonard pays the note and interest in full at that time?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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Gambit Stores accepts from Leonard Co. a $3,400, 90-
day, 6% note dated May 10 in settlement of Leonard's overdue
account.
(a) What is the maturity date of the note?
(b) What entry does Gambit make at the maturity date,
assuming Leonard pays the note and interest in full at that time?

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