33. On August 1, 2011, Hampton Construction received a 9 percent, six-month note receivable from Dusty Roads, one of Hampton Construction's problem credit customers. Roads had owed $36,000 on an outstanding account receivable. The note receivable was taken in settlement of this amount. Assume that Hampton Construction makes adjusting entries for accrued interest revenue once each year on October 31. Journalize the following transaction. "Assume that Dusty Roads pays the note plus accrued interest in full. Record the collection of the principal and interest on January 31, 2012".

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
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33. On August 1, 2011, Hampton
Construction received a 9 percent, six-month
note receivable from Dusty Roads, one of
Hampton Construction's problem credit
customers. Roads had owed $36,000 on an
outstanding account receivable. The note
receivable was taken in settlement of this
amount. Assume that Hampton Construction
makes adjusting entries for accrued interest
revenue once each year on October 31.
Journalize the following transaction.
"Assume that Dusty Roads pays the note
plus accrued interest in full. Record the
collection of the principal and interest on
January 31, 2012".
Transcribed Image Text:33. On August 1, 2011, Hampton Construction received a 9 percent, six-month note receivable from Dusty Roads, one of Hampton Construction's problem credit customers. Roads had owed $36,000 on an outstanding account receivable. The note receivable was taken in settlement of this amount. Assume that Hampton Construction makes adjusting entries for accrued interest revenue once each year on October 31. Journalize the following transaction. "Assume that Dusty Roads pays the note plus accrued interest in full. Record the collection of the principal and interest on January 31, 2012".
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