Question
(a) Donna's Diner was allowed to replace a $40,000 account receivable with a 5.5% note receivable that will be due in 90 days. Please prepare
(a) Donna's Diner was allowed to replace a $40,000 account receivable with a 5.5% note receivable that will be due in 90 days. Please prepare the necessary journal entry from Donna's standpoint.
(b) Assume that Donna's pays the note on time. Please prepare the journal entry to show the payment as as it would appear on the books of the holder of the note.
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Auditing and Assurance Services An Applied Approach
Authors: Iris Stuart
1st edition
73404004, 978-0073404004
