The following are notes receivable transactions for Cullumber Co.: May 1 June 30 July 31 Aug. 31 Sept. 30 Nov. 1 Received a $12,000, six-month, 6% note from Jioux Company in settlement of an account receivable. Interest is due at maturity. Accrued interest on the Jioux note, at Cullumber's year end. Adjustments are recorded annually. Lent $3,600 cash to an employee, Noreen Irvine, receiving a two-month, 5% note. Interest is due at the end of each month. Received the interest due from Ms. Irvine. Received payment in full from Ms. Irvine. Jioux Company defaulted on its note. Cullumber does not expect to collect on the note. Record the transactions for Cullumber Co. Cullumber Co. uses only one allowance account for both accounts and notes receivable.

The following are notes receivable transactions for Cullumber Co.: May 1 June 30 July 31 Aug. 31 Sept. 30 Nov. 1 Received a $12,000, six-month, 6% note from Jioux Company in settlement of an account receivable. Interest is due at maturity. Accrued interest on the Jioux note, at Cullumber's year end. Adjustments are recorded annually. Lent $3,600 cash to an employee, Noreen Irvine, receiving a two-month, 5% note. Interest is due at the end of each month. Received the interest due from Ms. Irvine. Received payment in full from Ms. Irvine. Jioux Company defaulted on its note. Cullumber does not expect to collect on the note. Record the transactions for Cullumber Co. Cullumber Co. uses only one allowance account for both accounts and notes receivable.

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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