Journal Entries (Note Received, Discounted, Dishonored, and Collected) Received a 120-day, 6% note in payment for accounts receivable balance o Apr. 6 $3,000. 26 Discounted the note at a rate of 7%. Received a 30-day, 7% note in payment for accounts receivable balance of May 3 $900. June 2 The $900, 30-day, 7% note is dishonored. 5 The dishonored note is paid, plus interest at 7% on the maturity value. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1

Journal Entries (Note Received, Discounted, Dishonored, and Collected) Received a 120-day, 6% note in payment for accounts receivable balance o Apr. 6 $3,000. 26 Discounted the note at a rate of 7%. Received a 30-day, 7% note in payment for accounts receivable balance of May 3 $900. June 2 The $900, 30-day, 7% note is dishonored. 5 The dishonored note is paid, plus interest at 7% on the maturity value. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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