Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush MateCo. received the following notes:DateFace AmountInterest RateTerm45 days60 days120 days90 days60 daysMar. 6$80,0001.5%Apr. 23July 20Sept. 62.24,00042,0003.54,0004.5.Nov. 2927,00072,00030 days6.Dec. 30Instructions1. Determine for each note (a) the due date and (b) the amount of interest due atmaturity, identifying each note by number.2. Journalize the entry to record the dishonor of Note (3) on its due date.3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) onDecember 31.4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6)in January.

Question
Asked Dec 17, 2019
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Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate
Co. received the following notes:
Date
Face Amount
Interest Rate
Term
45 days
60 days
120 days
90 days
60 days
Mar. 6
$80,000
1.
5%
Apr. 23
July 20
Sept. 6
2.
24,000
42,000
3.
54,000
4.
5.
Nov. 29
27,000
72,000
30 days
6.
Dec. 30
Instructions
1. Determine for each note (a) the due date and (b) the amount of interest due at
maturity, identifying each note by number.
2. Journalize the entry to record the dishonor of Note (3) on its due date.
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on
December 31.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6)
in January.
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Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Interest Rate Term 45 days 60 days 120 days 90 days 60 days Mar. 6 $80,000 1. 5% Apr. 23 July 20 Sept. 6 2. 24,000 42,000 3. 54,000 4. 5. Nov. 29 27,000 72,000 30 days 6. Dec. 30 Instructions 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. 2. Journalize the entry to record the dishonor of Note (3) on its due date. 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January.

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Expert Answer

Step 1

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.

 

Step 2

 (1)

Determine (a) the due date and (b) the amount of interest due at maturity.

 

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Amount of interest due at maturity $500 (1) $360 (2) Due date April 20 1. 2. June 22 November 17 $840 (3) $945 (4) $270 (5) $300 (6) 3. December 5 4. January 28 January 29 5. 6.

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Step 3

Working note:

...
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or note 1: For note 3: alculate the amount of interest due at maturity. Calculate the amount of interest due at maturity. Face amount × Annual interest rate Face amount × Annual interest rate Total interest= Total interest= xTime in terms of year ×Time in terms of year 45 days 5% =| $80,000x- 6% 120 days =| $42,000x 100 360 days 100 360 days = $500 = $840 For note 2: For note 4: Calculate the amount of interest due at maturity. Calculate the amount of interest due at maturity. Face amount x Annual interest rate Face amount x Annual interest rate Total interest=| Total interest= <Time in terms of year xTime in terms of year 60 days 9% =| $24,000x 90 days 100 360 days 7% =| $54,000x: 360 days = $360 = $945

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