On August 1, Handley Ltd. accepted a $25,200 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and both principal and interest are due in two months, on October 1. Interest on the note was accrued on August 31 and on September 30. On October 1, Borges paid the note, including the accrued interest. Prepare the journal entries required to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts)
On August 1, Handley Ltd. accepted a $25,200 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and both principal and interest are due in two months, on October 1. Interest on the note was accrued on August 31 and on September 30. On October 1, Borges paid the note, including the accrued interest. Prepare the journal entries required to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ss .224.
Transcribed Image Text:On August 1, Handley Ltd. accepted a $25,200 note from Borges Ltd. in settlement of an account receivable. The note bears interest of
6% and both principal and interest are due in two months, on October 1. Interest on the note was accrued on August 31 and on
September 30. On October 1, Borges paid the note, including the accrued interest. Prepare the journal entries required to record the
above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Account Titles and Explanation
Date
Debit
Credit
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