On August 1, Oak Ltd. accepted a $25,400 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

On August 1, Oak Ltd. accepted a $25,400 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

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 5P

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On August 1, Oak Ltd. accepted a $25,400 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

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