Jake's Auto Repair received a $3,000, 90 day, 10 % promissory note from Samantha in exchange for auto repairs. After 90 days, Samantha is unable and refuses to pay Jake's Auto Repair $3,075 ($3,000 to repay the note and $75 in interest.) What journal entry should Jake's Auto Repair making regarding Samantha dishonoring the note?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jake's Auto Repair received a $3,000, 90 day, 10 % promissory note from Samantha in exchange for auto repairs. After
90 days, Samantha is unable and refuses to pay Jake's Auto Repair $3,075 ($3,000 to repay the note and $75 in interest.)
What journal entry should Jake's Auto Repair making regarding Samantha dishonoring the note?
Transcribed Image Text:Jake's Auto Repair received a $3,000, 90 day, 10 % promissory note from Samantha in exchange for auto repairs. After 90 days, Samantha is unable and refuses to pay Jake's Auto Repair $3,075 ($3,000 to repay the note and $75 in interest.) What journal entry should Jake's Auto Repair making regarding Samantha dishonoring the note?
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