Explanation Note receivable: Note receivable refers to a written promise received by the creditor from the debtor in formal, for the amounts to be settled within a stipulated period of time. This written promise is issued by a debtor or borrower to the lender or creditor. Notes receivable is an asset of a business. Notes receivable often used for the credit periods of more than 60 days. Accounts receivable : Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Interest on note: Interest on note is the amount charged on the principal value of note for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender. Journalize the entries to record the transactions. Date Account Title and Explanation Debit ($) Credit ($) March 8 Notes receivable 33,000 Accounts receivable 33,000 ( To record the receipt of note on account) March 31 Notes receivable 80,000 Accounts receivable 80,000 ( To record the receipt of note on account) May 7 Cash 33,275 Notes receivable 33,000 Interest revenue ( $ 33 , 275 − $ 33 , 000 ) 275 ( To record collection of cash on note of March 8) May 16 Notes receivable 72,000 Accounts receivable 72,000 ( To record the receipt of note on account) June 11 Notes receivable 36,000 Accounts receivable 36,000 ( To record the receipt of note on account) June 29 Cash $81,400 Notes receivable $80,000 Interest revenue ( $ 81 , 400 −<

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Financial and Managerial Accounting - CengageNow

Ch. 8 - What are the three classifications of receivables?Ch. 8 - Dans Hardware is a small hardware store in the...Ch. 8 - What kind of an account (asset, liability, etc.)...Ch. 8 - After the accounts are adjusted and closed at the...Ch. 8 - A firm has consistently adjusted its allowance...Ch. 8 - Which of the two methods of estimating...Ch. 8 - Neptune Company issued a note receivable to...Ch. 8 - If a note provides for payment of principal of...Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

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7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY

Journalize the entries to record the transactions.

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