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. Due date: Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest. 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. The due date for the note issued on May 14, 2016.

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Answer 1

Question

Chapter 8, Problem 8.20EX

(a)

To determine

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.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

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.

The due date for the note issued on May 14, 2016.

(b)

To determine

The maturity value of the note.

(c) 1

To determine

To journalize: The entries to record the transactions of M Furniture Company.

(2)

To determine

To journalize: The entries to record the receipt of the payment of the note at maturity.

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?

The following data were taken from the records of Splish Brothers Company for the fiscal year ended June 30, 2025. Raw Materials Inventory 7/1/24 $58,100 Accounts Receivable $28,000 Raw Materials Inventory 6/30/25 46,600 Factory Insurance 4,800 Finished Goods Inventory 7/1/24 Finished Goods Inventory 6/30/25 99,700 Factory Machinery Depreciation 17,100 21,900 Factory Utilities 29,400 Work in Process Inventory 7/1/24 21,200 Office Utilities Expense 9,350 Work in Process Inventory 6/30/25 29,400 Sales Revenue 560,500 Direct Labor 147,550 Sales Discounts 4,700 Indirect Labor 25,360 Factory Manager's Salary 63,400 Factory Property Taxes 9,910 Factory Repairs 2,500 Raw Materials Purchases 97,300 Cash 39,200 SPLISH BROTHERS COMPANY Income Statement (Partial) $

Answer 2

Question

Chapter 8, Problem 8.20EX

(a)

To determine

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.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

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.

The due date for the note issued on May 14, 2016.

(b)

To determine

The maturity value of the note.

(c) 1

To determine

To journalize: The entries to record the transactions of M Furniture Company.

(2)

To determine

To journalize: The entries to record the receipt of the payment of the note at maturity.

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Answer 3

Question

Chapter 8, Problem 8.20EX

(a)

To determine

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.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

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.

The due date for the note issued on May 14, 2016.

(b)

To determine

The maturity value of the note.

(c) 1

To determine

To journalize: The entries to record the transactions of M Furniture Company.

(2)

To determine

To journalize: The entries to record the receipt of the payment of the note at maturity.

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Answer 4

Question

Chapter 8, Problem 8.20EX

(a)

To determine

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.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

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.

The due date for the note issued on May 14, 2016.

(b)

To determine

The maturity value of the note.

(c) 1

To determine

To journalize: The entries to record the transactions of M Furniture Company.

(2)

To determine

To journalize: The entries to record the receipt of the payment of the note at maturity.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.20EX

(a)

To determine

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.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

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.

The due date for the note issued on May 14, 2016.

(b)

To determine

The maturity value of the note.

(c) 1

To determine

To journalize: The entries to record the transactions of M Furniture Company.

(2)

To determine

To journalize: The entries to record the receipt of the payment of the note at maturity.

Answer 6

Chapter 8, Problem 8.20EX

(a)

To determine

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.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

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.

The due date for the note issued on May 14, 2016.

Answer 7

Chapter 8, Problem 8.20EX

(a)

To determine

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.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

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.

The due date for the note issued on May 14, 2016.

Answer 8

(b)

To determine

The maturity value of the note.

Answer 9

(b)

To determine

The maturity value of the note.

Answer 10

(c) 1

To determine

To journalize: The entries to record the transactions of M Furniture Company.

Answer 11

(c) 1

To determine

To journalize: The entries to record the transactions of M Furniture Company.

Answer 12

(2)

To determine

To journalize: The entries to record the receipt of the payment of the note at maturity.

Answer 13

(2)

To determine

To journalize: The entries to record the receipt of the payment of the note at maturity.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Solution Summary: The author explains that note receivable refers to a written promise received by the creditor from the debtor in formal.

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The maturity value of the note.

To journalize: The entries to record the transactions of M Furniture Company.

To journalize: The entries to record the receipt of the payment of the note at maturity.

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