Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spasigned a 60-day, 10% promissory note for $7,800. If the note is dishonored, butTubman intends to continue collection efforts, what is the journal entry to record thedishonored note? (Use 360 days a year.)

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Asked Nov 11, 2019
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Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa
signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, but
Tubman intends to continue collection efforts, what is the journal entry to record the
dishonored note? (Use 360 days a year.)
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Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

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Expert Answer

Step 1

Calculate interes...

Interest revenue Notes receivable x Interest rate x Time
60
= $7,800 x 10%x-
360
= $130
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Interest revenue Notes receivable x Interest rate x Time 60 = $7,800 x 10%x- 360 = $130

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