Question
Cullumber Company has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue
Cullumber Company has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $15,000 cash to Manny Lopez on a 12 month, 8% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $30,000, 90-day, 6% note. 16 Received a $26,400, 180 day, 8% note in exchange for Joe Fernettis outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable. Record the collection of the Lopez note at its maturity in 2021.
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