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Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%.   Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%.   Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%.
  Required:
A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
1. the issuance of the note on January 1.
2. the payment of the note at maturity. Assume a 360-day year.
B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
1. the receipt of the note on January 1.
2. the receipt of the payment of the note at maturity. Assume a 360-day year.
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