Question
Jan 21 A customer who owed $10,000 on an account receivable, agreed to sign a 60-day note receivable with an interest rate of 6.0%. The
Jan 21 A customer who owed $10,000 on an account receivable, agreed to sign a 60-day note receivable with an interest rate of 6.0%. The interest earned on the note will be paid at the maturity date of the note receivable.
| Jan. 21 | Notes Receivable........... Accounts Receivable .... | $10,000 | $10,000 |
Feb 10 Sanford Company sold the note receivable from Jan 21st to the bank, which discounted the note at 8.0%.
Required:
What is the correct journal entry for February 10th and why?
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Using Equity Audits To Create Equitable And Excellent Schools
Authors: Linda E. Skrla, Kathryn B. McKenzie, James Joseph Scheurich
1st Edition
1412939321, 978-1412939324
