Accounting for Notes Receivable

Chart Of Accounts

Instructions

Saracen Systems sells voice mail systems to small businesses. Saracen engaged in the following activities involving notes receivable:

a$.$ On October $1,$ Saracen sold an $$7,2p0$ system to Majors Company. Majors gave Saracen a $8-$month, $8\%$ note as payment.

b$.$ On November $1,$ Saracen sold a $$3,000$ system to Hadley Inc. Hadley gave Saracen a $10-$month, $13\%$ note as payment.

c$.$ On June $1,$ Majors paid the amount due on its note.

d$.$ On September $1,$ Hadley paid the amount due on its note.

Required:

Prepare the necessary journal and adjusting entries for Saracen Systems to record these transactions assuming a December $31$ year end.