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KrystalLea
Nov 27, 2007, 09:42 AM
A credit customer, Wilson, requested an extension of his $30,000 account receivable. The company issued a 90 day note, with interest acctuing at an annual rate of 12%.

Please help with this entry ? ? ? ?

Thank You
qcmar24
Nov 27, 2007, 11:47 AM
A credit customer, Wilson, requested an extension of his $30,000 account receivable. The company issued a 90 day note, with interest acctuing at an annual rate of 12%.

Please help with this entry ? ? ? ?

Thank You
First
Dr. Note receivables...................30,000
Cr.Account receivable................................30,000
---------------------------------------------------------
when the pay the note in 90 days then'
Dr.Cash......................................30,900
Cr.Interest revenue..............................900
Cr.Note receivable................................30,000
--------------------------------------------------------------
if they dishonor the note then
Dr.Accounts receivable.................30,900
Cr.Interest revenue...............................900
Cr.Note receivable.................................30,000
KrystalLea
Nov 28, 2007, 01:27 PM
qcmar24 always helps me . . . Thank You

First
Dr. Note receivables...................30,000
Cr.Account receivable................................30,000
---------------------------------------------------------
when the pay the note in 90 days then'
Dr.Cash......................................30,900
Cr.Interest revenue..............................900
Cr.Note receivable................................30,000
--------------------------------------------------------------
if they dishonor the note then
Dr.Accounts receivable.................30,900
Cr.Interest revenue...............................900
Cr.Note receivable.................................30,000