Promissory note: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions. Promissory note gives the holder a stronger legal claim as compared to accounts receivable . It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest. To prepare: The journal entry to record the issuance of the note.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 9.13E

(a)

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To prepare: The journal entry to record the issuance of the note.

(b)

To determine

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

(c)

To determine

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Hello tutor need help. Financial accounting

Please given step by step explanation of this general accounting question

Please don't give answer with incorrect data if data is unclear comment please i will write values. otherwise will give unhelpful. no ai

Answer 2

Question

Chapter 9, Problem 9.13E

(a)

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To prepare: The journal entry to record the issuance of the note.

(b)

To determine

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

(c)

To determine

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 9.13E

(a)

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To prepare: The journal entry to record the issuance of the note.

(b)

To determine

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

(c)

To determine

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 9.13E

(a)

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To prepare: The journal entry to record the issuance of the note.

(b)

To determine

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

(c)

To determine

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 9.13E

(a)

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To prepare: The journal entry to record the issuance of the note.

(b)

To determine

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

(c)

To determine

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Answer 6

Chapter 9, Problem 9.13E

(a)

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To prepare: The journal entry to record the issuance of the note.

Answer 7

Chapter 9, Problem 9.13E

(a)

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To prepare: The journal entry to record the issuance of the note.

Answer 8

(b)

To determine

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

Answer 9

(b)

To determine

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

Answer 10

(c)

To determine

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Answer 11

(c)

To determine

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 9 - Prob. 1Q Ch. 9 - 2. What are some common types of receivables other...Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - Prob. 10Q

To prepare: The entry to record the dishonor of the note, considering that ML Company expects collection will occur.

To prepare: The entry to record the dishonor of the note, assuming that ML Company does not expect collection in the future.

Want to see the full answer?

Chapter 9 Solutions