On January 1, Orange Corp. accepted a one-year note for $7,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. The journal entry would be: A. Cash 7,280 Note Receivable Interest Revenue B. Accounts Receivable Note Receivable Interest Revenue C. Bad Debts Expense Notes Receivable Interest Revenue D. Accounts Receivable Notes Receivable 7,000 280 7,280 7,000 280 7,280 7,000 280 7,280 7,280
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- On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest ExpenseA business issued a 60-day, 7% note for $43,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Tlustrate the effects on the accounts and financial statements of recording the issuance of the note. Balance Sheet Statement of Cash Income Assets Liabilities Stockholders' Equity Flows Statement Statement of Cash Flows Income Statement b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number. Balance Sheet Income Statement of Cash Assets Liabilities Stockholders' Equity Statement…
- Al Ahlya Company wrote a RO2,500, three-months, 8% promissory note dated August 1, to remove credit sales to Jelfar Company. What journal entry would Jelfar Company makes when receiving the note from Al Ahlya. Select one: a. Account Receivable 2500 Note Receivable 2500 b. Note receivable 2500 Account Receivable 2500 Oc. Account Receivable 200 Note Receivable 200 O d. Note Receivable 200 Account Receivable 2009. The maker of a $240,000, 6%, 90-day note receivable failed to pay the note on the due date of November 30. What accounts should be debited and credited by the payee to record the dishonored note receivable? 10. The note receivable dishonored in Discussion Question 9 is paid on December 30 by the maker, plus interest for 30 days at 9%. What entry should be made to record the receipt of the payment? I need help with #10A business issued a 90-day, 9% note for $25,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. Statement of Cash Flows No effect Statement of Cash Flows Statement of Cash Assets No effect Flows Assets Cash = Accounts payable ✓ Balance Sheet Liabilities Liabilities Balance Sheet Notes payable ✓ +Notes payable b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number. +…
- We sold ABC company merchandise on account for $24,000 They were unable to pay it so we changed it to a notes receivable for 30 days at 7%. A) What is the journal entry to change the AR to a NR Debit Credit B) What is the journal entry to show receiving the payment for the note receivable and interest? Debit Credit4. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? a. Uncollectible Accounts Expense b. Accounts Receivable c. Allowance for Doubtful Accounts d. Interest Expense 5. On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to - record the collection of the note should include a a. credit to Notes Receivable for $20,300 b. debit to Interest Receivable for $300 c. credit to Interest Revenue for $300 d. debit to Notes Receivable for $20,000 6. The receivable that is usually evidenced by a formal, written instrument of credit is a(n) a. trade receivable b. note receivable c. accounts receivable d. income tax receivableA business issued a 90-day, 8% note for $34,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number.
- Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. The entry or entries Gideon makes to record the recovery of the bad debt is: Multiple Choice Account Title Credit Accounts Receivable-A. Hopkins Debit 2,000 Allowance for Doubtful Accounts 2,000 Cash 2,000 Accounts Receivable-A. Hopkins 2,000 Account Title Debit Credit Cash 2,000 Accounts Receivable-A. Hopkins 2,000 Account Title Debit Credit Accounts Receivable-A. Hopkins 2,000 Bad debts expense 2,000On January 16, Gee Company accepted a P600,000, 10%, 90-day note from a customer. On February 15, the note was discounted at 12%. At maturity date, the note was dishonored and the bank charged a P2,500 protest fee. Compute the following assuming that the notes receivable was discounted with recourse – secured borrowing. 1. Maturity value 2. Net proceeds 3. Carrying amount of notes receivable 4. Debited to Loss on Discounting 5. Interest income 6. Interest expense 7. Debited to ‘Note receivable dishonored’ or ‘Accounts receivable’ as a result of the dishonored noteNote receivable Prefix Supply Company received a 120-day, 7% note for $84,000, dated April 12 from a customer on account. Assume 360-days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note. $ c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. E