Lee Company accepts a $10,000, 7% 3-month note receivable in settlement of an account receivable from Johnson and Johnson Ltd. on April 1, 2019

a) Prepare the journal entries for the issuance of the note on April 1 and the payment of the note on July 1 assuming the note is honoured.

b) Repeat a) assuming the note is dishonoured but collection is expected.

c) Prepare the journal entries if on Aug 1 after the note is dishonoured a $5,000 payment is received with a Visa Credit Card from Johnson and Johnson Ltd. The Visa service Charge fees are 5%, the Debit Transaction fees are 3%