BACK NEXT Question 13 Sheridan Company accepts a $24,000, four month, not receivable in settlement of an account receivable on June 1, 2021. Interest is to be paid at maturity Sheridan Company has a December 31 year end and adjusts its accounts annually. (Note: Lee Company uses only one allowance account for both accounts and notes receivable) Your answer is correct Record (1) the issue of the note on June 1 and (2) the settlement of the note on October 1, assuming the note is honoured. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account title and enter for the amounts. Record journal entries in the order presented in the problem.) (b) Assume instead that the note is dishonoured but eventual collection is expected. Record the October 1 journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Tities and Explanation Oct 1 Debit Credit (To record dishonouring of note where collection is expected.)