Notes Receivable Discounting1. Record the transactions in a general journal.When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.Marienau Suppliers had the following transactions:Mar. 1Sold merchandise on account to G. Perez $5,500.20G. Perez gave a $5,500, 90-day, 6% note to extend time for payment.30G. Perez's note is discounted at Commerce Bank at a discount rate of 8%.Apr. 20Received a $2,600, 60-day, 6% note from D. Larson in payment for sale of merchandise.May 5D. Larson's note is discounted at Commerce Bank at a discount rate of 7%.June 19D. Larson's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $50 bank fee.July 31D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $50 bank fee, and interest at 6% on the maturity value plus the bank fee.Aug. 1Sold merchandise on account to A. Bauer $5,700.12A. Bauer paid $300 and gave a $5,400, 30-day, 5% note to extend time for payment.Sept. 11A. Bauer paid $500, plus interest, and gave a new $4,900, 60-day, 6% note to extend time for payment.26A. Bauer's note is discounted at Commerce Bank at a discount rate of 7.5%.Nov. 10A. Bauer's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $50 bank fee.Dec. 15A. Bauer's dishonored note is collected. Bauer pays Marienau the maturity value of the note, the $50 bank fee, and interest at 6% on the maturity value plus the bank fee. Record the transactions in a general journal.When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.

A person or business promise to pay sum of dollar at a particular future date to definite person or…

Answered: Marienau Suppliers had the following…

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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Notes Receivable Discounting

1. Record the transactions in a general journal.

When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.

Marienau Suppliers had the following transactions:

Mar. 1	Sold merchandise on account to G. Perez $5,500.
20	G. Perez gave a $5,500, 90-day, 6% note to extend time for payment.
30	G. Perez's note is discounted at Commerce Bank at a discount rate of 8%.
Apr. 20	Received a $2,600, 60-day, 6% note from D. Larson in payment for sale of merchandise.
May 5	D. Larson's note is discounted at Commerce Bank at a discount rate of 7%.
June 19	D. Larson's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $50 bank fee.
July 31	D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $50 bank fee, and interest at 6% on the maturity value plus the bank fee.
Aug. 1	Sold merchandise on account to A. Bauer $5,700.
12	A. Bauer paid $300 and gave a $5,400, 30-day, 5% note to extend time for payment.
Sept. 11	A. Bauer paid $500, plus interest, and gave a new $4,900, 60-day, 6% note to extend time for payment.
26	A. Bauer's note is discounted at Commerce Bank at a discount rate of 7.5%.
Nov. 10	A. Bauer's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $50 bank fee.
Dec. 15	A. Bauer's dishonored note is collected. Bauer pays Marienau the maturity value of the note, the $50 bank fee, and interest at 6% on the maturity value plus the bank fee. Record the transactions in a general journal. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.

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