June 23 Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. Sept. 21 The note is dishonored by Radon Express Co. Oct. 21 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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Entries for Receipt and Dishonor of Note Receivable

Journalize the following transactions of Trapper Jon’s Productions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank.

June 23 Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account.
Sept. 21 The note is dishonored by Radon Express Co.
Oct. 21 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.

 

 

June 23 Notes Receivable     
  Accounts Receivable-Radon Express Co.     
Sept. 21 Accounts Receivable-Radon Express Co.     
  Notes Receivable     
  Interest Revenue     
Oct. 21 Cash     
  Accounts Receivable-Radon Express Co.     
  Interest Revenue 
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