Prepare general journal entries for the following transactions: Aug. 4 Received a 120-day, 12% note in payment

Question:

Prepare general journal entries for the following transactions:

Aug. 4 Received a 120-day, 12% note in payment for accounts receivable balance of $4,000.

14 Discounted the note at a rate of 14%.

Sept. 5 Received a 30-day, 11% note in payment for accounts receivable balance of $1,200.

Oct. 5 The $1,200, 30-day, 11% note is dishonored.

Nov. 4 The dishonored note is paid, plus interest at 11% on the maturity value.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...