On October 1, 2022, Harlan received a $15,000, six-month, 10% note in exchange for goods sold to McBride Company. Prepare the journal entry to record the receipt of the note on October 1, 2022. Prepare the adjusting entry to record the accrued interest on the note at December 31, 2022. Write a wriiten explanation on what would Harlan do if McBride dishonors its note, but Harlan still expects to eventually collect it?

The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Answered: On October 1, 2022, Harlan received a…

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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On October 1, 2022, Harlan received a $15,000, six-month, 10% note in exchange for goods sold to McBride Company.

Prepare the journal entry to record the receipt of the note on October 1, 2022.
Prepare the adjusting entry to record the accrued interest on the note at December 31, 2022.
Write a wriiten explanation on what would Harlan do if McBride dishonors its note, but Harlan still expects to eventually collect it?

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