Question
8. Use the following information to answer 3 questions: On December 1, 2022 Silver Company accepted a four-month, 6% note for $5,000 from one
8. Use the following information to answer 3 questions: On December 1, 2022 Silver Company accepted a four-month, 6% note for $5,000 from one of its customers, River Smith, to settle a past due account receivable. a. What journal entry should Silver Company make to record its acceptance of the note on December 1, 2022? (1 point) b. Silver Company's accounting year ends on December 31. How much interest revenue from this note should Silver Company record in 2022? Show your calculations. (1 point) c. On April 1, 2023, River Smith pays the note and interest in full to Silver Company as promised. What journal entry should Silver Company make to record the collection of cash on April 1, 2023? (1 point)
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