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.

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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.

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If $7,200 was the beginning inventory, purchases were $15,500, and sales were $14,200, what would the ending inventory be for Westfield Products Co.? A. $11,000 B. $8,500 C. $5,000 D. $3,500

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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.

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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.

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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.

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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

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Answer 13

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Answer 14

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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.

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