On April 1, 2010, Tabor Co. received a $6,000 note from a customer in settlement of a

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On April 1, 2010, Tabor Co. received a $6,000 note from a customer in settlement of a $6,000 account receivable from that customer. The note bore interest at the rate of 15% per annum, and the note plus interest was payable March 31, 2011.

Required:

Use the horizontal model to show the effects of each of these transactions and adjustments:

a. Receipt of the note on April 1, 2010.

b. The accrual of interest at December 31, 2010.

c. The collection of the note and interest on March 31, 2011.

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Accounting What the Numbers Mean

ISBN: 978-0073527062

9th Edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

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Question Posted: Mar 13, 2012 07:48 AM

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On April 1, 2010, Tabor Co. received a $6,000 note from a customer in settlement of a

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Journal entries a 412010 Dr Note Receivable 6000 Cr Accounts Receivable 6000 b c 12312010 Dr Interes...View the full answer

Accounting What the Numbers Mean

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