Lundquist Company received a 60-day, 10% note for $48,000, dated July 23, from a customer on account.
| Required: | |
| a. Determine the due date of the note. | |
| b. Determine the maturity value of the note. Assume 360 days in a year. | |
| c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. |
a. due date of the note = 21st September
b. maturity value of the note = $48,000 + 48000*10%*60/360 = $48800
c.
| Accounts | Debit | Credit |
| Cash | $48800 | |
| Note receivables | $48000 | |
| Interest revenue | $800 |
Lundquist Company received a 60-day, 10% note for $48,000, dated July 23, from a customer on...