Journal Entries (Note Received, Discounted, Dishonored, and Collected) Received a 120-day, 6% note in payment for accounts receivable balance o Apr. 6 $3,000. 26 Discounted the note at a rate of 7%. Received a 30-day, 7% note in payment for accounts receivable balance of May 3 $900. June 2 The $900, 30-day, 7% note is dishonored. 5 The dishonored note is paid, plus interest at 7% on the maturity value. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1

Journal Entries (Note Received, Discounted, Dishonored, and Collected) Received a 120-day, 6% note in payment for accounts receivable balance o Apr. 6 $3,000. 26 Discounted the note at a rate of 7%. Received a 30-day, 7% note in payment for accounts receivable balance of May 3 $900. June 2 The $900, 30-day, 7% note is dishonored. 5 The dishonored note is paid, plus interest at 7% on the maturity value. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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