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DLW, Inc. has a customer, Palmer, Inc. that has an accounts receivable balance of $500,000 and that balance is over 270 days old. DLW tells
DLW, Inc. has a customer, Palmer, Inc. that has an accounts receivable balance of $500,000 and that balance is over 270 days old. DLW tells Palmer that the account receivable will be converted to a note receivable. On September 1, 2019, Palmer writes the promissory note to settle the account receivable balance and DLW records the transaction. The note is due 10 months from September 1, 2019 and bears interest at an annual rate of 6%. The next time DLW prepares its financial statements is December 31, 2019. What journal entry will DLW make at September 1, 2019? Dr. Je $500,000 $ 10,000 Dr. Cr. $500,000 $ 10,000 Cr. Dr. $10,000 Cr. $10,000 Note Receivable Interest Receivable Accounts Receivable Interest Revenue Interest Receivable Interest Revenue Notes Receivable Cash Notes Receivable Accounts Receivable Interest Receivable Interest Revenue Dr. $500,000 $500,000 $500,000 Cr. Dr. Cr. Dr. $500,000 $30,000 Cr. $30,000
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