b) Note was dishonoured. Amount of note and interest were written off as uncollectible. (Massive uses the allowance method of accounting for bad debts)

Massive Company accepted a $10,000, 8%, 90-day note dated May 16, from Small Corp. as an extension on its past-due account. Required Prepare the necessary general journal entries in Massive Company's books on May 16 and maturity date, for each of the following independent assumptions: a) Note was held until maturity and collected on time b) Note was dishonoured. Amount of note and interest were written off as uncollectible. (Massive uses the allowance method of accounting for bad debts)