Prepare the journal entries needed for Green Grass Co. to record the following transaction. The year end is December 31. On November 15, 2017, Green Grass Co. agreed to accept $500 in cash and a $ 2,000, 90 day, 8% note receivable from Blue Company to settle its $2, 500 past due account. a) Record the entry on November 15 b) On December 31 (46 days of interest $20.16 has been accrued, record the adjusting entry needed to show this). c) On the date of maturity (February 13 assuming the note was paid with 90 days interest - $ 39.45 total). Record the entry needed. Prepare the journal entries needed for GreenGrass Co. to record the followingtransaction. The year end is December 31.On November 15, 2017, Green Grass Co.agreed to accept $500 in cash and a $2,000, 90 day, 8% note receivable from BlueCompany to settle its $2,500 past dueaccount. a) Record the entry on November15 b) On December 31 (46 days of interest$20.16 has been accrued, record theadjusting entry needed to show this). c) Onthe date of maturity (February 13 assumingthe note was paid with 90 days interest - $39.45 total). Record the entry needed.-

Step 1: Record the receipt of payment from Blue CompanySince the account was past due, it is…

Answered: Prepare the journal entries needed for…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Prepare the journal entries needed for Green Grass Co. to record the following transaction. The year end is December 31. On November 15, 2017, Green Grass Co. agreed to accept $500 in cash and a $ 2,000, 90 day, 8% note receivable from Blue Company to settle its $2, 500 past due account. a) Record the entry on November 15 b) On December 31 (46 days of interest $20.16 has been accrued, record the adjusting entry needed to show this). c) On the date of maturity (February 13 assuming the note was paid with 90 days interest - $ 39.45 total). Record the entry needed.