Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming the note nterest-bearing note with a present value of $26,598. The implicit interest rate on the note receivable was 9%. Assume a 360-day year. 1 2 3 4 5 6 7 DATE Dec. 11, 2019 Notes Receivable Sales Revenue Discount on Notes Receivable Dec. 31, 2019 Discount on Notes Receivable Interest Income Feb. 9,2020 Cash Notes Receivable GENERAL JOURNAL ACCOUNT TITLE POST. REF. DEBIT PAGE 12 CREDIT
Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming the note nterest-bearing note with a present value of $26,598. The implicit interest rate on the note receivable was 9%. Assume a 360-day year. 1 2 3 4 5 6 7 DATE Dec. 11, 2019 Notes Receivable Sales Revenue Discount on Notes Receivable Dec. 31, 2019 Discount on Notes Receivable Interest Income Feb. 9,2020 Cash Notes Receivable GENERAL JOURNAL ACCOUNT TITLE POST. REF. DEBIT PAGE 12 CREDIT
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 17E: Interest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale...
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On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $27,000, 60-day note.
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