eBook Calculator Print Item Blake Sy Mystic Magic issued a $170,000 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Mystic Magic for the following transactions. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. A. Initial sale on January 1, 2018 B. Dishonored note entry on Oct 1, 2018 C. Receivable sale on November 10, 2018 A. Jan 1, 2018 Notes Receivables Arnold Sales Revenue 170, 0000 0 170,000 B. Oct. 1, 2018 Accounts Receivablet Arnold 182,750 Notes Receivables Arnold 170,000 Interest Revenue 12,750 C. Nov. 10, 2018 Cash Factoring Expense Accounts Receivable: Arnold 182.750 CM Work For each transaction, remember that some transaction dates will require two separate journal entries. When inventory is sold, the sale is recorded but also, Inventory balances and the cost of the inventory must be recorded/adjusted as well. Check My Work Next All work saved. Email instructor Save and Exe Submit Assignment for Grading