# Ramsey Company issues an \$550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%. Required:A.Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):1.the issuance of the note on January 1.2.the payment of the note at maturity. Assume a 360-day year.B.Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):1.the receipt of the note on January 1.2.the receipt of the payment of the note at maturity. Assume a 360-day year.

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Ramsey Company issues an \$550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%.
Required:
A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
 1 the issuance of the note on January 1. 2 the payment of the note at maturity. Assume a 360-day year.
B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
 1 the receipt of the note on January 1. 2 the receipt of the payment of the note at maturity. Assume a 360-day year.
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Step 1

Given:

Issue price of notes = \$550,000

Tim period = 45 days

Buckner’s discount rate = 4%

As the rate of interest payable on the notes is not given, it is not considered.

Step 2

Journal Entries in the ...

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