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

Quote:

---

Originally Posted by KrystalLea

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

qcmar24 always helps me.. . Thank You

Quote:

---

Originally Posted by qcmar24

First
Dr. Note receivables...................30,000
Cr.Account receivable................................30,000
---------------------------------------------------------
when the pay the note in 90 days then'
Dr.Cash......................................30,90 0
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

---