Question
Mr. Tom sold to Mr. Jerry OMR 160,000 worth of goods on the 12th of February 2020 by accepting a 150 days, 6% interest bearing
Mr. Tom sold to Mr. Jerry OMR 160,000 worth of goods on the 12th of February 2020 by accepting a 150 days, 6% interest bearing note. Both Mr. Tom & Mr. Jerry need your help in understanding how and in what way the notes receivable and the payables should be treated. Provide them with the required help by showing how the transactions would be treated in the following situations. a) When the notes are accepted. b) On the maturity date, the note is honored. c) Suppose Mr. Tom prepared final accounts on the 2nd May 2021. d) Following the above situation, the bill is met on maturity. e) The note was dishonored on the maturity date by Mr. Jerry
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