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    KrystalLea's Avatar
    KrystalLea Posts: 16, Reputation: 2
    New Member
    		  
    #1

    Nov 27, 2007, 10:42 AM
    Issuing notes : Accounting
    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's Avatar
    qcmar24 Posts: 65, Reputation: 3
    Junior Member
    		  
    #2

    Nov 27, 2007, 12:47 PM
    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
    KrystalLea's Avatar
    KrystalLea Posts: 16, Reputation: 2
    New Member
    		  
    #3

    Nov 28, 2007, 02:27 PM
    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
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