Question

pentin_con=con&external_br 5,6,8,9,10,Appl&ll - Sun, Jul 5 - 10 am to 12 pm 90% : Search Saved Outer Armour (OA) is a company that sells high quality outerwear. OA has accepted two notes receivables from customers and has a December 31, 2020 year-end. Note Receivable A On September 1, 2020, OA accepted a 6570,000, 6 months note receivable with an interest rate of 63. Interest and the principal balance are due at maturity. On October 31, 2020, OA accepted a $335,000 note receivable with an interest rate of 4.53. Interest is paid the first day of each following month and the principal is due at maturity on June 30, 2021. Note Receivable B Required: 1. Not available in connect. 2. How many months need to be accrued for Notes Receivable A and B as of December 31, 2020? Note receivable A Note receivable B months months 3. Prepare the adjusting journal entries to accrue the interest for Note Receivable A and Note Receivable B as at December 31, 2020 (Round your final answers to the nearest whole dollars.) < Prev 34 of 38 Next >

Answer 1

2)	Note Receivable A		4	months
	Note Receivable B		1	month.
3)	Date	General Journal				Debit	Credit
	31-Dec	Interest receivable				11400
		interest income					11,400
		(570,000*6%*4/12)
	31-Dec	Interest receivable				1256
		interest income					1256
		(335,000*4.5%*1/12)