Recording a dishonored note receivable McKale Corporation has a three-month, $18, 000, 9% note receivable from L. Peters that was signed on June 1,2 018. Peters defaults on the loan on September 1. Journalize the entry for McKale to record the default of the loan.

Intermediate Accounting: Reporting And Analysis
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Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....
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Recording a dishonored note receivable

McKale Corporation has a three-month, $18, 000, 9% note receivable from L. Peters that was signed on June 1,2 018. Peters defaults on the loan on September 1.

Journalize the entry for McKale to record the default of the loan.

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