Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.a. Journalize Ramsey’s entries to record:1. the issuance of the note.2. the payment of the note at maturity.b. Journalize Buckner’s entries to record:1. the receipt of the note.2. the receipt of the payment of the note at maturity.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....
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Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.
a. Journalize Ramsey’s entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
b. Journalize Buckner’s entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.

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