Entries for Receipt and Dishonor of Note Receivable

Journalize the following transaction of Sanchez Productions. Assume 360 days in a year. For a compound tranaction,

July 12. Received a 140000,120- day,7% note dated July 12 from Accolade Co. on account.

Nov. 9. The note is dishonored by Accolade Co.

Dec. 9. Received the amount due on the dishonored note plus interest for 30 days at 9% on the total amount charged to Accolade Co. on November 9.

DRAFT:

July 12 Notes Receivable ______________

Accounts Receivable Accolade Co. _______________

Nov.9 Accounts Receivable Accolade Co._____________

Notes Receivable ______________

Interest Revenue _______________

Dec.9 Cash ______________

Accounts Receivable- Accolade Co. _______________

Interest Revenue _______________