Question

jasmine supply Co. has the following transaction related to

Record the collection of the Bull note at its maturity in 2021. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov. 1

Answer 1

Answer:

Date	Account Titles and Explanation	Debit ($)	Credit ($)
1-Nov	Notes receivable	$24,000
	Cash		$24,000
	(To record the money lend on note at 7%)
11-Dec	Note receivable	$12,000
	Sales		$12,000
	(To record the goods sold on note)
16-Dec	Notes receivable	$18,000
	Accounts receivable		$18,000
	(To record the receipt of note in exchange of accounts receivable)
31-Dec	Interest Receivable	$360
	Interest Revenue		$360
	(To record the accrued interest revenue on all notes receivable)

Working:

24000 * 7% * 2/12 = 280
12000 * 3% * 20/360 = 20
18000 * 8% * 15/360 = 60
280 + 20 + 60 = 360