On August 2, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account.
(2) Prepare Jun’s journal entry for August 2.
The notes receivables are the promissory notes issued by one party to another party that promises to pay a certain sum of money on its maturity date.
The journal entry for the issuance of the notes will be recorded on its issuance date with the amount of face value of the notes as payment.
Notes receivables- Jun Co.
Accounts receivables- Ryan Albany
(To record the issuance of note)
Refer to the information in Exercise 7-11 and prepare the journal entries for the following selected transactions of Danica Company for 2017. 2017
Jan. 27 Received Lee’s payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $5,000, 10%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company.
17 Accepted a $2,000, 30-day, 9% note dated March 17 in granting H. Cheng a time extension on his past-due account receivable.
Apr. 16 Cheng dishonored his note when presented for payment.
May 1 Wrote off the Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.
c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit.
Prepare journal entries for the following selected transactions of Danica Company for 2016. 2016
Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
31 Prepared an adjusting entry to record the accrued interest on the Lee note.
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