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Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 8, Problem 8.24E
Journalizing note receivable transactions
Like New Steam Cleaning performs services on account. When a customer account becomes four months old, Like New converts the account to a note receivable. During 2016, the company completed the following transactions:
Apr. 28 | Performed service on account for Java Club, $24,000. |
Sep. 1 | Received a $24,000, 60-day, 6% note from Java Club in satisfaction of its past-due |
Oct. 31 | Collected the Java Club note at maturity. |
Record the transactions in Like New’s journal.
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Students have asked these similar questions
Like New Steam Cleaning performs services on account. When a customer account becomes four months old, Like New converts the account to a note receivable. During 2018,the company completed the following transactions:
Record the transactions in
Like New's
journal. Round to the nearest dollar. (Use a
365-day
year for computations. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
On July 9, Mifflin Company receives an $8,500, 90-day, 8% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note?
Multiple Choice
Debit Notes Receivable $8,670; credit Sales $8,670.
Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500.
Debit Accounts Receivable $8,500; credit Sales $8,500.
Debit Notes Receivable $8,500; credit Accounts Receivable $8,500.
Debit Notes Receivable $8,500; credit Sales $8,500.
Johnson Hardware Supply, Inc., sells on account. When a customer account becomes four months old, Johnson Hardware Supply converts the account to a note receivable. During 2018, Johnson Hardware Supply completed these transactions:
A (Click the icon to view the transactions.)
Requirement
1. Record the transactions in Johnson Hardware Supply, Inc.'s journal. (Record debits first, then credits. Exclude explanations from any journal entries.)
Record the sales on account.
Journal Entry
Date
Accounts
Debit
Credit
Apr
29
More Info
Record the receipt of the note.
29 Sold goods on account to Parkview Corp., $24,000. Ignore cost of
goods sold.
1 Received a $24,000, 60-day, 9% note from Parkview Corp., in
satisfaction of its past-due account receivable.
31 Collected the Parkview Corp., note at maturity. Use 360-day year for
interest computation and round to the nearest dollar.
Journal Entry
Apr
Date
Accounts
Debit
Credit
Sep
Sep
Oct
Record the collection of the Parkview Corp. note.
Print
Done…
Chapter 8 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 8 - Prob. 1QCCh. 8 - When recording credit card or debit card sales...Ch. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - At December 31 year-end, Crain Corporation has an...Ch. 8 - Using the data in the preceding question, what...Ch. 8 - At year-end, Schultz, Inc. has cash of 11,600,...Ch. 8 - Using the data in the preceding question, assume...
Ch. 8 - What is the difference between accounts receivable...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - When dealing with receivables, give an example of...Ch. 8 - What type of account must the sum of all...Ch. 8 - Prob. 6RQCh. 8 - What are two common methods used when accepting...Ch. 8 - What occurs when a business factors its...Ch. 8 - What occurs when a business pledges its...Ch. 8 - Prob. 10RQCh. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - When using the allowance method, how are accounts...Ch. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - How does the percent- of-sales method compute bad...Ch. 8 - How do the percent-of-receivables and aging-of-...Ch. 8 - What is the difference between the...Ch. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 8.1SECh. 8 - Prob. 8.2SECh. 8 - Applying the direct write-off method to account...Ch. 8 - Collecting a receivable previously written...Ch. 8 - Prob. 8.5SECh. 8 - Applying the allowance method (percent-of-sales)...Ch. 8 - Applying the allowance method...Ch. 8 - Prob. 8.8SECh. 8 - Prob. 8.9SECh. 8 - Accounting for a note receivable On June 6,...Ch. 8 - Prob. 8.11SECh. 8 - Recording a dishonored note receivable Midway...Ch. 8 - Prob. 8.13SECh. 8 - Defining common receivables terms Match the terms...Ch. 8 - Prob. 8.15ECh. 8 - Journalizing transactions using the direct...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Journalizing transactions using the direct...Ch. 8 - Journalizing credit card sales, note receivable...Ch. 8 - Journalizing note receivable transactions...Ch. 8 - Journalizing note receivable transactions The...Ch. 8 - Journalizing note receivable transactions Like New...Ch. 8 - Evaluating ratio data Chippewa Carpets reported...Ch. 8 - Prob. 8.26ECh. 8 - Prob. 8.27APCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Using ratio data to evaluate a companys financial...Ch. 8 - Prob. 8.34BPCh. 8 - Prob. 8.35BPCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Prob. 8.40BPCh. 8 - Prob. 8.41CPCh. 8 - Prob. 8.42PSCh. 8 - Prob. 8.1CTDCCh. 8 - Paulines Pottery has always used the direct...Ch. 8 - Prob. 8.1CTFCCh. 8 - Use Starbucks Corporations Fiscal 2013 Annual...
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